Jubilant FoodWorks will consider splitting its equity shares, which currently have a face value of Rs 10 each, at the company’s board meeting on February 2, it said in an exchange filing on Friday.
A stock split increases the number of shares of a firm without diluting its value, with each share available at a price lower than the current value (Rs 10 per share in this case). Following the split, the stocks appear more affordable and less intimidating to the investors, which leads to a rise in demand.
Jubilant FoodWorks shares leaped to the green territory after the fast food operator announced its share split proposal. The board will also consider the firm’s earnings for the quarter ended December 31, 2021.
At 2 pm, the shares of Domino’s Pizza’s operator in India were up 0.27 percent at Rs 3928.55 on BSE, after having traded in the red for much of Friday’s session. On NSE, the stock was trading 0.23 percent higher at Rs 3,927.50.
The upward movement in the stock came on in an otherwise weak trading session with benchmarks Sensex and Nifty50 in the red due to weakness across most sectors.
The Jubilant FoodWorks shares have given investors a return of more than 41.5 percent in the last year as against Sensex returns of 23 percent during the period.
The food service company holds the master franchise rights for three international brands, Domino’s Pizza, Dunkin’ Donuts and Popeyes, addressing three different food market segments.
Jubilant FoodWorks currently operates more than 1,435 outlets for Domino’s Pizza, Dunkin’ Donuts and Hong’s Kitchen and is a market leader in the pizza segment.
(Edited by : Ajay Vaishnav)
