Small-cap stock rises 7% as the company announces stock split in 1:5 ratio; check details

Small-cap stock: Coastal Corporation's share price jumped as much as 7 per cent in intraday trade on the BSE on Monday, December 23, as the company announced a stock split in a 1:5 ratio.

In an exchange filing on December 23, the company said its board of directors had approved the subdivided of shares with a face value of ₹10 each into five shares of ₹2 each. The company said its stock-split move is aimed at enhancing the liquidation of its equity shares and encouraging the participation of retail investors.

After shareholders ' approval, the company will announce the record date for the sub-division of the stock.

Coastal Corporation share price trend

Coastal Corporation share price has been subdued this year. As of the previous session's close, the stock is down over 1 per cent this year so far.

However, the small-cap stock has seen healthy traction this month. On a monthly scale, the stock has gained nearly 12 per cent in December after four consecutive months of losses.

The small-cap stock hit a fresh 52-week high of ₹354.90 on January 12 and a 52-week low of ₹208.95 on June 4 this year.

Stock market today

Meanwhile, the Indian stock market saw a relief rally on Monday, with the Sensex and the Nifty 50 rising over a per cent each on value buying at the lower level. Heavyweight stocks, such as Reliance Industries, HDFC Bank and ITC, rose 1-2 per cent during the session.

The market, however, pared gains later. Experts believe the sentiment remains weak, and the market may not be able to sustain gains at higher levels unless earnings recover significantly. 

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