Up 175% in 4 months! This multibagger stock announces stock split

New Delhi: Multibagger counter Servotech Power Systems (SPSL) has announced sub-division of its equity shares and the corporate action will be implemented in the next two months.

“The board of directors of SPSL have has considered and approved the proposal of sub-division of equity shares of the company,” it said in a regulatory filing.

In order to undertake and implement the aforesaid corporate action, the company board has also approved altering the capital clause in the memorandum of association (MoA) of the company.

The company board has approved sub-division of equity shares in a 1:5 ratio. This means that every share with a face value of Rs 10 each will be divided into five equity shares of a face value of Rs 2 each.

“The authorized share capital of the company will increase to 11 crore equity shares with a face value of Rs 2 each from existing 2.2 crore equity shares of Rs 10 each,” the company's filing added.

On Tuesday, the scrip zoomed 5% to Rs 164 before giving up its gains. The stock has jumped about 8% in the last three sessions.

Shares of the company have zoomed as much as 175% in the last four months and 245% in the last one year.

The company board has also given the authorization for the creation of charges and borrowings up to the limit of Rs 200 crore each. It will also consider grant of options to employees under Employees Stock Option Scheme 2022.

In November, the NSE-listed company had bagged a major project of EV Charger Supply from Petroleum Corporation (BPCL) to supply and install 800 units of DC fast EV Chargers at different locations across the country.

The project, which involves supplying a series of EV Chargers, has already been initiated from the state of Delhi and is worth Rs 46.2 crore. It is expected to be completed by March 31, 2023.

New Delhi-based Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products and medical devices in the country.