Silver Touch Surges 80%, Announces Bonus and Stock Split

TECH
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AuthorVihaan Mehta|Published at:
Silver Touch Surges 80%, Announces Bonus and Stock Split
Overview

Silver Touch Technologies shares jumped 80% in 14 sessions, surpassing ₹2,000 crore market cap. The IT firm has now approved its first-ever bonus issue in a 1:1 ratio and a 1:5 stock split, awaiting record date disclosure. This follows a significant rally and a mandate from the Indian armed forces.

Silver Touch Technologies Surges 80%, Announces Bonus and Stock Split

Silver Touch Technologies Ltd. shares advanced 4.1% on Friday, January 16, following the company's announcement of a bonus share issue and a stock split. The IT services provider has seen its stock price skyrocket by 80% over the past 14 trading sessions, pushing its market capitalization beyond ₹2,000 crore.

Corporate Action Details

The board of Silver Touch Technologies approved a bonus issue in a 1:1 ratio, entitling shareholders to one additional share for each share held. Concurrently, the company sanctioned a stock split of its shares in a 1:5 ratio. This means each share with a face value of ₹10 will be divided into five shares, each with a face value of ₹2. This marks the first time the company is offering both a bonus and a stock split to its investors. The specific record date for both corporate actions is yet to be disclosed.

Market Performance and Mandates

The recent surge in Silver Touch Technologies' stock price is significant. In addition to the 80% gain in just two weeks, the stock has climbed 140% over the last 12 months. During this period of strong performance, the company also secured a mandate from the Indian armed forces, a notable achievement that likely contributed to investor confidence. The stock was trading at ₹1,591 on Friday, reflecting the positive sentiment.

Investor Outlook

The approved bonus issue and stock split are expected to enhance shareholder value and potentially improve the stock's liquidity by making it more accessible to a wider range of investors. However, the actual impact will be realized once the record dates are announced and the corporate actions are executed. Investors will be closely watching for further updates from the company regarding the timeline.

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