JBM Auto Ltd, a leader in the electric vehicle (EV) and automotive sector, has announced its second stock split. This move aims to make its shares more affordable and increase market liquidity. The company has set January 31, 2025, as the record date for this stock split.
Stock Split Details
The stock split will reduce the face value of each equity share from ₹2 to ₹1 in a 1:2 ratio, effectively doubling the number of shares in circulation. The company’s board approved this action on October 28, 2024, following Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Record Date: January 31, 2025
- Purpose: Increase liquidity, expand the investor base, and make shares more accessible to retail investors.
Shareholders on the record date will benefit from the stock split, which will take effect immediately after.
About JBM Auto Ltd
JBM Auto Ltd, a part of the $3 billion JBM Group, is a major player in the automotive and e-mobility industries. The company focuses on:
- Electric Buses and Vehicles: Driving innovation in sustainable mobility.
- Sheet Metal Components: High-quality products for the automotive and white goods industries.
- Tools, Dies, and Molds: Precision-engineered products for global markets.
With operations in 25 locations across 10 countries, JBM Auto leverages advanced technology and innovation to stay ahead in the market.
Financial Performance
For the September 2024 quarter, JBM Auto reported strong financial results:
- Revenue: ₹1,286 crore, a 4.47% increase from ₹1,231 crore in the same quarter last year.
- Net Profit: ₹49 crore, up 11.45% from ₹44 crore in Q3 FY24.
- EBITDA: ₹174.81 crore, a rise of 18.54% compared to ₹147.47 crore last year.
These results highlight the company’s strong operations and growing demand for its products.
Strategic Implications of the Stock Split
The 1:2 stock split aligns with JBM Auto’s strategy to attract more retail investors. By lowering the face value of shares, the company aims to:
- Increase Liquidity: Boost trading volumes in the market.
- Broaden Accessibility: Make shares affordable for more investors.
- Sustain Market Momentum: Highlight growth potential and shareholder inclusivity.
With its consistent financial growth and focus on innovation in the e-mobility space, JBM Auto is well-positioned for long-term success.
Disclaimer: This article is for informational purposes only and does not provide investment advice.
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