Stock Split: Co with significant L&T shareholding to divide equity shares; details here

The board has approved the subdivision of one equity share with a face value of ₹10 into 10 equity shares of ₹1 each, implying a split ratio of 1:10.

By Meghna Sen

Shares of E2E Networks Ltd. will be in focus on Tuesday, April 21, after the company's board approved a stock split.

The board has approved the subdivision of one equity share with a face value of ₹10 into 10 equity shares of ₹1 each, implying a split ratio of 1:10.

The record date for the stock split will be announced in due course.

Stock splits are typically undertaken to improve liquidity and make shares more affordable for retail investors by increasing the number of shares in circulation while reducing the price per share.

E2E Networks has not altered its share face value since January 1, 2000.

As per the March quarter shareholding pattern, promoters held a 39.45% stake in the company, while engineering and infrastructure major Larsen & Toubro Ltd. (L&T) owned 18.45%.

The initial stake purchase by L&T was through a preferential issue of shares. Additionally, it acquired a secondary stake in the company.

E2E Networks provides CPU and GPU-based cloud computing platforms, enabling large-scale general and AI workloads, supported by its relationship with NVIDIA.

The company also has strategic alliances with global OEMs such as NVIDIA, Intel, AMD, Microsoft and Dell.

Shares of E2E Networks settled 3.60% lower at ₹2,704.90 on Monday, but are still up over 35% so far this year.