Navkar Urbanstructure Ltd, a Gujarat-based infrastructure firm, has announced a 1:2 stock split in a move aimed at enhancing share liquidity and investor participation. This corporate action comes just days after the company completed a bonus issue and reflects its proactive approach to restructuring shareholder value.
Following board approval, the company has set May 9, 2025 as the record date to determine the eligibility of shareholders for the stock split.
Stock Split Details
- Split Ratio: 1 equity share split into 2
- Old Face Value: ₹2 per share
- New Face Value: ₹1 per share
- Record Date: May 9, 2025
Post-split, the total investment value remains unchanged, but the number of shares held by each investor will double, each priced lower due to the division. This makes the stock more affordable for retail investors, potentially improving liquidity and market accessibility.
About Navkar Urbanstructure Ltd
Established in 1992, Navkar Urbanstructure Ltd is a small-cap infrastructure company based in Gujarat, India. With over 27 years of industry experience, the firm specializes in the construction and development of:
- Sewage treatment plants
- Pumping stations
- Transmission pipelines for drinking water and sewage
The company’s core expertise in public utility infrastructure has helped it secure a steady presence in regional development projects
Recent Bonus Issue
Before the stock split, the company had also executed a bonus issue in the ratio of 3:2, receiving in-principle approval from the BSE on April 21, 2025. A total of 33.66 crore bonus equity shares were issued after adjusting for fractional entitlements. The record date for this bonus issue was April 24, 2025.
Financial Performance
Q3 FY25 vs. Q3 FY24 Comparison
- Revenue: ₹8.61 crore (up 48.19% from ₹5.81 crore)
- Net Profit: ₹0.91 crore (up 7.06% from ₹0.85 crore)
While still modest in absolute terms, these improvements reflect steady progress in the company’s operational performance.
Looking Ahead
The 1:2 stock split, coming shortly after the bonus issue, signals Navkar Urbanstructure’s intent to widen retail participation and improve trading volumes. While the intrinsic value of the company remains the same post-split, such actions can generate investor interest and provide a platform for future re-rating—provided business fundamentals continue to strengthen.
Are you tracking Navkar Urbanstructure’s corporate actions? Let us know how this affects your investment outlook in the comments below.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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