Shares of Eicher Motors climbed as much as 4.4 per cent to Rs 20,753 on the BSE on Friday, quoting at their highest level since January 29, 2020. The company manufactures the iconic Royal Enfield brand of motorcycles which leads the premium motorcycle segment in India.
In the past two months, the stock has outperformed the market by surging 49 per cent. The company announced, on May 25, its stock split plan to make the stock more affordable for the small retail investors and increase liquidity. In comparison, the S&P BSE Sensex has rallied 24 per cent during the same period.
On June 12, the company’s board approved the stock split in the ratio of 1:10 i.e. sub-division of equity shares of the company from the existing one (1) equity share of face value of Rs 10 each into ten (10) equity shares of face value of Rs 1- each.
The record date for the purpose of sub-division of equity shares shall be decided after obtaining approval for sub-division from the shareholders at the ensuing Annual General Meeting (AGM) on August 10, 2020.
Meanwhile, going forward, Eicher Motors expects increased demand for two wheelers as people would be wary of using public transport amid the coronavirus pandemic, according to the company's annual report.
Eicher Motors Managing Director Siddhartha Lal said the last few months have been challenging, but as the lockdown gradually begins to ease out, we are witnessing strong initial customer interest and confidence.
"Going forward, we do estimate an increased demand for personal transportation and two-wheelers as people would be wary of using public transport. This we believe will augur well for us and for the industry as a whole," Lal said in the 2019-20 annual report.
