Image Source: JM Financial
Rolex Rings Limited, a prominent manufacturer of bearing rings and auto components, has taken a significant step to enhance the accessibility and liquidity of its shares in the stock market. On September 4, 2025, the company's Board of Directors approved a proposal to split each equity share with a face value of ₹10 into 10 equity shares of ₹1 each. This decision, subject to shareholder approval at the upcoming 23rd Annual General Meeting (AGM), is aimed at making the shares more affordable for retail investors and increasing overall market participation.
Key Highlights of the Share Split Proposal
Current face value of the equity shares: ₹10 per share
Proposed face value after split: ₹1 per share for each of the 10 new shares
Total number of authorized shares to increase from 3,50,25,000 to 35,02,50,000 shares
Issued, paid-up, and subscribed shares to rise from 2,72,33,312 to 27,23,33,120 shares
Overall capital value remains unchanged at ₹35.02 crore authorized and ₹27.23 crore paid-up capital
Proposal is subject to approval at the 23rd AGM and necessary regulatory clearances
Expected implementation timeline post-approval is approximately two months
Details and Rationale Behind the Stock Split
The board's decision follows the motivation to make Rolex Rings' shares more affordable and attractive for a wider investor base, particularly retail investors who might find investing challenging at higher per-share prices. The stock split will reduce the nominal value of each share, effectively bringing down the price per share in the market without altering the company's overall market capitalization.
By increasing the total number of shares tenfold, the move is poised to improve trading liquidity, facilitating smoother and more frequent transactions in the market. Greater liquidity often helps narrow the bid-ask spread and enhances price discovery, benefiting both investors and the company.
Changes in Share Capital Structure
If shareholders approve the split at the AGM, the authorized equity capital will undergo revision, multiplying the number of shares by 10 as follows:
Authorized Equity Shares: from 3,50,25,000 shares (₹10 each) to 35,02,50,000 shares (₹1 each)
Issued, Paid-up Shares: from 2,72,33,312 shares (₹10 each) to 27,23,33,120 shares (₹1 each)
These changes ensure that while the total face value of authorized and paid shares remains stable, investors hold a larger number of shares with a reduced face value. This corporate action does not dilute ownership but adjusts the share count and price for market practicality.
Additional Board Approvals
Alongside the share split, the Board also approved a related party transaction concerning salary payments to relatives of promoters. This approval complies with relevant regulations under the Companies Act and SEBI Listing Rules and will also be subject to member approval at the AGM.
Next Steps for Investors and Market Participants
Rolex Rings will officially announce the record date for the stock split implementation after securing all necessary shareholder and regulatory approvals. Investors and stakeholders should watch for further updates from the company on the timeline and execution of this corporate transformation.
The company expressed its confidence that the stock split will facilitate increased participation from small and retail investors, ultimately contributing to enhanced trading volumes and a more dynamic market presence.
About Rolex Rings Limited
Rolex Rings is recognized as a leading player in the manufacture of forged and machined components, including hot-rolled bearing rings and automotive parts. Serving diverse industries such as vehicle manufacturing, industrial machinery, wind turbines, and railways, Rolex Rings holds a strong position among India's top forging companies.
Recent stock movements have seen the shares trade significantly lower than their 52-week highs but recovering from lows, with the stock gaining interest from investors due to the forthcoming corporate actions.
This development is set to make the shares more accessible and could positively influence the stock's liquidity and valuation dynamics in the near term.
Source: ScanX Trade News, Business Upturn, DSIJ, Moneycontrol
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