A stock market filing said the board unanimously decided to defer the proposal to sub-divide the equity shares of the company to a future date though “the share price movement over the last few months and financial indicators were found to be ideal for a stock split proposal at the current scenario.”
A board meeting of the company was held at the registered office of July, 18 2020 to consider a proposal to seek shareholders’ approval for sub-dividing the equity shares of the company.
“The decision to defer the proposal was taken considering the economic uncertainties that are currently prevailing due to COVID 19 outbreak and related slowdowns being witnessed in the economy. Future update on this matter will be intimated in due course,” the company said in the filing.
The Muthoot Finance share that closed at Rs1204.45 on Friday (NSE) has a current market capitalisation of Rs48303 crore ($6.45 billion). The shares gained more than Rs585 in the past one year alone, representing a growth of about 84 per cent.
The share staged smart performance on markets during the past one year and this is manifested by its wide variance between the 52-week high and 52-week low of Rs1284 and Rs476.80 respectively.
Though the COVID 19 is set to have its negative bearing on the economy with its consequent knock-on effect on the corporate world, the gold loan companies are said to be gearing for one of its best years in the recent history as the imminent liquidity crunch would naturally land the impoverished at the gold loan companies for their fund needs.
Muthoot Finance reported a 59 per cent year-on-year increase in its standalone net profit for the fourth quarter of the last fiscal at Rs 815 crore.
The company whose Kerala business accounts for only about three per cent of its gold loan business, has reported a standalone net profit of Rs3,018 crore for FY20 against Rs1,972 crore in the previous fiscal, a growth of 53 per cent.