Atul Auto on high street

Atul Auto has hit a new high today at Rs.499.95, with volumes going up 2 times. Currently the stock is up 5% at Rs.485 levels.

The stock hit a new high, reacting to its announcement which came in after market closing hours – the Board of the company will meet on 26^th June to consider subdivision of shares or stock split. Its current face value stands at Rs.10/share.

A stock-split is a division of a share into shares with lower face value wherein market cap remains same and the total value of the holding does not change, only the number of shares you hold goes up. The purpose of the stock split is to increase liquidity, where more new buyers and sellers will come in, and the true value of the stock gets realized.