The share price of Balaji Telefilms closed 1.09 per cent higher at Rs 515.60 on the Bombay Stock Exchange (BSE) after hitting an intra-day high of Rs 530, following the company's announcement that it is considering a sub-division of its Rs 10 share.
The rise followed the company's announcement that it will consider a split of its Rs 10 share into a lower denomination on Saturday. The company is yet to declare what the new denomination will be.
Media analysts said the stock-split should increase liquidity on the counter and generate greater interest in the stock. But this will have no consequence on the company's fundamentals.
The company, in any case, has been doing well financially. Its serials are telecast on almost every channel and command the quoted advertisement rates. Almost all its serials enjoy high television rating points.
In fiscal 2001-02, Balaji Telefilms posted a 566.9 per cent rise in net profit to Rs 29.01 crore (Rs 4.35 crore) on a 127.7 per cent rise in total income to Rs 113.10 crore (Rs 49.67 crore).
The board also approved a hike in foreign institutional investor investment ceiling from 24 per cent of the paid-up capital to 40 per cent, subject to the approval of shareholders at the ensuing annual general meeting.
The sale of stake was undertaken at Rs 600 per share. The promoters' holding in the company now stands at 57.8 per cent. The move to divest the stake was aimed at improving liquidity in the stock.