Avro India Board Approves 1:10 Stock Split

Avro India Limited's Board of Directors has approved a 1:10 stock split. The company expects this corporate action to significantly increase its total number of outstanding shares from 1,33,11,050 to 13,31,10,500.

Under the proposal, each existing equity share with a face value of Rs. 10 will be divided into 10 equity shares, each with a face value of Rs. 1. Shareholders will vote on the plan at an Extraordinary General Meeting (EGM) scheduled for April 18, 2026. The company will also need to secure necessary regulatory and statutory approvals.

Board Meeting Approves Split

The board approved the stock split proposal during a meeting on March 25, 2026. Each share of Rs. 10 face value will become ten shares of Rs. 1 face value. Avro India's authorized share capital will remain ₹15.00 crore, but after the split, it will consist of 15 crore shares.

Goal: More Accessible Shares

The main goal of this strategic move is to make Avro India's shares more accessible and affordable for a wider range of retail investors. The company expects this to lead to increased trading volumes and better market liquidity.

Company Background

Avro India Limited manufactures and markets electrical appliances, particularly fans and other home appliances. This proposed stock split is a key move designed to improve its stock's market performance and is the company's first stock split.

Key Details of the Split

• The number of outstanding shares will rise significantly from 1,33,11,050 to 13,31,10,500.
• The face value per share will decrease from Rs. 10 to Rs. 1.
• Shareholders are set to vote on the proposal at an EGM on April 18, 2026.
• The company must secure all required regulatory and statutory approvals.
• The split is projected to be completed within two months after receiving shareholder and regulatory approvals.

Potential Hurdles

The main risks involve securing shareholder approval at the EGM and obtaining all necessary regulatory clearances. Any delays in these approval processes could postpone the anticipated benefits of increased liquidity and affordability.

Industry Peers

Competitors like Crompton Greaves Consumer Electricals and Havells India operate in the broader electrical appliances market. They have considerably larger market capitalizations and more diverse product ranges than Avro India. While these peers haven't recently announced similar large stock splits, improving share liquidity is a common tactic to attract retail investors, which Avro India is now pursuing.

Next Steps for Investors

Investors will be watching for:

• The outcome of the shareholder vote at the EGM on April 18, 2026.
• Confirmation of all necessary regulatory and statutory approvals.
• The company's announcement of the final completion date after approvals.
• The market's reaction, including any subsequent changes in trading volumes and share price movements.