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Shares of Jay Bharat Maruti hit the 5 per cent upper circuit at Rs 314 on the BSE in Monday's intra-day trade after the company said its board will consider stock split on August 8. The stock of the auto components and equipment maker had hit a record high of Rs 344.25 on July 4. In comparison, the S&P BSE Sensex was down 0.02 per cent at 66,669 at 10:11 AM.
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On Sunday, July 23, Jay Bharat Maruti announced that a meeting of board of directors of the company will be held on August 8, 2023, inter-alia, to consider and approve the unaudited financial results of the company for the quarter ended June 30, 2023. The board will also consider the proposal for sub-division/split of existing equity shares of the company having face value of Rs 5 each.In past three months, the stock price of the company has more-than-doubled or zoomed 123 per cent, as compared to 11 per cent rise in the S&P BSE Sensex.
A stock split/sub division of shares is a corporate action in which a company issues additional shares to shareholders, increasing the total by the specified ratio based on the shares they held previously. Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and to increase the liquidity of trading in its shares.
JBML is a joint venture (JV) between JBM Group and Maruti Suzuki India (MSIL). The company is engaged in the manufacturing of key auto systems such as chassis & suspension systems, exhaust systems, welded assemblies, tools & dies, etc. for India’s largest car maker, MSIL.
JBM Group has a diversified portfolio in the field of automotive, buses & electric vehicles, EV charging Infra, engineering & design services and renewables, with an infrastructure of 60 manufacturing plants and 5 engineering & design centers in over 37 countries.
Last month, JBML announced that the company will invest Rs 300-350 crore approximately in 2 new manufacturing plants in Haryana and Gujarat in a phased manner.
It will be setting up 2 new manufacturing plants to cater to the requirements of its key customer Maruti Suzuki in both the regions. These plants will be commissioned at Kharkhoda, Sonipat in Haryana and SMG Suppliers’ Park in Gujarat.
The new plant at Kharkhoda, Sonipat in Haryana will provide capacity enhancement so as to meet the requirements of Maruti Suzuki’s new manufacturing plant at IMT Kharkhoda, which is expected to be commissioned by FY2025. JBML will also be setting up an assembly facility in the new Gujarat facility for supplying auto assemblies, the company said.
