Shares of Canara Bank are in the spotlight as the board of the lender has given the nod for the sub-division of its equity shares of Rs 10 into five shares with a face value of Rs 2 each. The announcement, made after market hours on Monday, is anticipated to boost liquidity and accessibility for retail investors.
The stock split, in the ratio of 1:5, is aimed at improving liquidity in the bank’s shares and making it more affordable for retail investors.
In the previous session, the stock ended 1.24% lower at Rs 572.80 on BSE. The market cap of Canara Bank stood at Rs 1.03 lakh crore, with a total of 3.92 lakh shares changing hands, amounting to a turnover of Rs 22.56 crore.
Canara Bank shares have shown significant gains, rising 29.31% since the beginning of this year and soaring by 111.33% in the last one year. The banking stock had a 52-week low of Rs 268.85 on February 24, 2023, and a 52-week high of Rs 598.75 on February 23, 2024. Canara Bank has a one-year beta of 0.5, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Canara Bank’s stock stands at 65.8, signaling that the stock is trading neither in the oversold nor overbought zone.
The stock split of fully paid-up equity shares is subject to the approval of the Reserve Bank of India (RBI). The state-run lender aims to complete the stock split within 2-3 months from the intimation of the date of the Board meeting on February 7, 2024, to the stock exchanges.
“This is to inform the Stock Exchanges that the Board of Directors of the Bank at its meeting held today, i.e., Monday, 26th February 2024, inter alia, approved Sub-division/ split of every one equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up, into 5 (five) equity shares of face value of Rs. 2 /- (Rupee two only) each, fully paid-up, subject to approval of the Reserve Bank of India,” said the lender in a communication to bourses.
