This Miniratna Defense PSU stock has been approved by the board of directors that split 1 share into 2

Government-owned defence and heavy equipment PSU BEML Ltd. said on Monday, July 21 that it would allocate its shares to 1:2, reducing the face value of each equal share from Rs 10 to Rs 5. The proposal is decided by the company’s board of directors, and will be approved by shareholders and as part of enhanced retail sales, to enhance retail sales, to enhance retail sales and enhance volume approval.

This is the first time BEML has made a stock split, and it is interesting that the company has never allocated bonus shares to shareholders since its listing.

Record date will be announced later

In its exchange application, the company stated that the record date for the stock split will be determined and shareholders will be notified to approval later. After the spin-off, the number of outstanding shares will double, and the share price may be adjusted proportionally, making small investors relatively cheap.

Why do companies divide stocks

Typically, stock splits make the market more accessible by lowering the price per share without changing the company’s market value. This action increases liquidity and makes stocks more attractive to individual investors. Although the overall value of the investment has not changed, the size of investors’ holdings doubled in the case of a 1:2 split.

BEML stock price moves

Beml Ltd.’s BSE share price fell 0.40% to Rs 4,383.80 on Monday after the announcement. The counter has grown 7% so far in 2025, and the stock has been one of the most active stocks on the investor guard list due to its growing footprint in defense and rail operations.

This means investors

After the record date is settled and separate valid, a face value of Rs 10 will be obtained for two face value of Rs 5, with no difference in the total value. The action may prove to be helpful for retail participation, especially as PSU stock continues to attract investors’ attention, even if government capital expenditure recommendations remain focused.