Stock Split: Shri Adhikari Brothers Television Network Limited has announced to divide its shares into 10 small pieces i.e. stock split. After this announcement of the company, on Tuesday, January 6, the shares of Shri Adhikari Brothers Television Network closed up by about 1.6 percent. The special thing is that this is the same smallcap media company, whose shares have given bumper multibagger returns of about 89,000 percent to its investors in the last five years.
1:10 Stock split announced
The company said in a communication sent to the stock exchanges that its board of directors has approved the split of shares in the ratio of 1:10. Under this, each share of the company’s existing face value of Rs 10 will be divided into 10 shares of face value of Re 1 each. However, the approval of the shareholders is yet to be taken for this corporate action, which will be taken through postal ballot.
Approval to take loan from promoter also
In this meeting the board took another important decision. The company has also approved a plan to take a loan of up to ₹100 crore from the promoter. This loan will also include the option of conversion into equity shares in future. This proposal will also be put for the approval of the shareholders through postal ballot.
Occupation and background
Shri Adhikari Brothers Television Network Limited, which started business in 1994, is a company in the media and entertainment sector. It is primarily active in the business of content production and content syndication and provides content to various broadcasters, aggregators and satellite networks.
Tremendous jump in quarterly results
The company’s financial results have also been quite strong in recent times. The company’s standalone net profit in the September quarter stood at ₹14.1 crore, which is almost 83 times more than ₹0.17 crore in the same quarter last year. At the same time, the company’s revenue during the quarter increased by 244.44 percent on an annual basis to reach ₹ 4.34 crore.
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