Record high for Vari Renewables; board to discuss split of shares on January 20

Record high for Vari Renewables; board to discuss split of shares on January 20

Record high for Vari Renewables; board to discuss split of shares on January 20

Following the filing of documents for an IPO by parent firm Waari Energy last week, Waari Renewables has seen rapid growth.

Additionally, the stock has performed very well, returning more than 441% over the last year.

Following the announcement by the firm that its board will be considering a stock split on January 20, shares of Waari Renewable Technologies surged 10% to a record high of Rs 2,703.95 in early trading on January 5.

Should it be granted, it would be the company's first stock split.

A stock split is a business decision wherein a corporation splits its current shares among many holders. The aim is to decrease the price per share by a commensurate amount while increasing the number of outstanding shares. This is meant to lower the price of the stock and maybe boost liquidity by drawing in a larger pool of investors, but it does not alter the company's total market value or an investor's ownership position.

Vaari Renewable was trading on the National Stock Exchange at Rs 2,666.95 at 10:00 a.m. Additionally, the stock has performed very well, returning more than 441% over the last year.

Over the last week, the stock has surged, reaching even greater highs after the filing of paperwork for an IPO by the parent company, Vari Energies.

The Securities and Exchange Board of India (SEBI) received a draft red herring prospectus from Vaari Energies for the IPO, which entails the new issue of shares valued at Rs 3,000 crore and an offer to sell 32 lakh shares. Part of the money raised would be used by the business to construct a 6 gigawatt (GW) manufacturing plant in Odisha.