A stock split is usually done by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed.
KNR Constructions has total equity shares of 28.13 million shares, of which 60% or 17.09 million shares held by the promoters. Mutual funds held 23.76% stake followed by individual shareholders (8.49%) and foreign portfolio investors (3.95%) stake in the company.
In past four-months, the stock has outperformed the market by surging nearly 50% as compared to 11% rise in the S&P BSE Sensex.
At 09:54 am, the stock was up 5% at Rs 763 against 0.44% decline in the benchmark index. A combined 13,286 shares changed hands on the counter on the BSE and NSE so far.