Mobavenue AI Tech Proposes 1:5 Stock Split and MOA Changes

The company announced plans for a 1:5 equity share sub-division, which will change the face value of its shares.

The current issued, subscribed, and paid-up capital is ₹15.46 crore. Post-split, this capital will represent 7,72,97,790 shares. The face value of each equity share will decrease from ₹10 to ₹2.

Shareholders will vote on these proposals, including amendments to the company's Memorandum of Association (MOA). These amendments aim to enhance financial flexibility for future expansion by allowing the company to receive grants, accept loans, and provide guarantees or credit support.

Voting will occur via postal ballot through remote e-voting. The cut-off date for voting eligibility is March 27, 2026, with the e-voting period running from April 1 to April 30, 2026.

Why This Matters

The primary goal of the 1:5 stock split is to increase the stock's liquidity and make it more affordable for a wider range of retail investors. A lower per-share price can often attract more individual participation.

The proposed MOA changes signal an intent to strengthen the company's financial capabilities. This could help Mobavenue AI Tech secure capital more easily for expansion, research and development, or potential strategic acquisitions, positioning it for future growth.

Company Background

Mobavenue AI Tech, formerly known as Lucent Industries Limited, operates in the AI-powered digital advertising and marketing sector. In November 2025, its board approved a preferential issue to raise approximately ₹100 crore, subject to necessary approvals, to fund strategic initiatives. The company has not announced stock splits since 2018, making this proposed split a significant move.

Potential Risks

• Shareholder Approval: The success of both the stock split and MOA amendments depends on receiving the necessary shareholder votes.
• No Immediate Value Addition: A stock split itself does not inherently increase a company's market capitalization or intrinsic value; it simply divides the existing value into more shares.

Industry Trend

Several Indian companies have recently undertaken or announced 1:5 stock splits. This strategy is often used to boost liquidity and retail investor interest. Peers like Silver Touch Technologies Ltd., Kellton Tech Solutions Limited, and Nuvama Wealth Management Ltd. have announced similar corporate actions to increase share accessibility.

Next Steps for Investors

Investors should monitor the outcome of the postal ballot and e-voting process. The company is also expected to announce a record date for the share sub-division if it is approved. Additionally, investors will want to track any future announcements regarding the implementation of the MOA changes and how they are used for business development.