Jubilant FoodWorks (JFL), a master franchise of brands such as Domino’s and Dunkin’ Donuts, on Friday said its board will next month consider a proposal of splitting the equity shares of the firm.
The board would also consider the standalone and consolidated financial results of the company for the quarter ended December 31, 2021.
What is Stock Split?
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.
Regulatory filing read as
The board, in its scheduled meeting to be held on February 2, 2022, will consider a proposal for “alteration in the capital of the Company by sub-division/split of existing equity shares of the Company having face value of Rs. 10/- each, fully paid up.”
Impact on Stock
The Jubilant FoodWorks stock rallied as much as 2.8 percent on BSE to an intraday high of Rs 4,027.35 following the development, indicating investors have welcomed the proposal.
At 2 pm Yesterday, 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.
About Company
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.
It also has franchise rights for Popeyes, an American multinational chain of fried chicken fast-food restaurants, for India, Bangladesh, Nepal and Bhutan markets.
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