Senco Gold Shares Jump 6% After Approval for ₹500 Crore QIP and Stock Split

Shares of Senco Gold increased by 6.4%, reaching a day’s high of ₹1,494.55 on the Bombay Stock Exchange (BSE) during early trading today. This surge follows the company’s announcement on Friday regarding its board’s approval for a Qualified Institutional Placement (QIP) of ₹500 crore, as well as a 1:2 stock split.

The company made this announcement after the market hours on October 4, 2024. In its filing to the exchanges, Senco Gold stated, “This is to inform you that the Board of Directors of the company at their meeting held today, i.e., October 4, 2024, considered and approved the following matters: i) Raising of funds by way of issuance of Equity Shares and/or securities convertible into Equity Shares at the option of the Company, for an aggregate amount not exceeding ₹500 crores (Rupees Five Hundred crores) by way of Qualified Institutional Placement (‘QIP’).”

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Additionally, the company announced a 1:2 stock split. This means that for every 1 share with a face value of ₹10, shareholders will now receive 2 shares with a face value of ₹5 each. The filing further explained, “Sub-division/split of 1 (one) equity share having face value of ₹10/- (Rupees Ten) each into 2 (two) equity shares having face value of ₹5/- (Rupees Five) each by alteration of the capital clause in the Memorandum of Association of the company along with Articles of Association.”

According to data from Trendlyne, this is the first time that Senco Gold has undertaken a stock split since its listing. Over the past year, the stock has experienced a significant rise of 128%, and in the current calendar year, it has increased by 108.8%.