Multibagger Heavy Electrical Equipment Stock Jumps 4.40% & Hits Upper Circuit as Board Announced Stock Split for 2nd Straight Year

On Monday, shares of United Van Der Horst Ltd jumped 5 per cent  to hit a upper circuit and made a new 52-week high of Rs 308 per share from its previous closing of Rs 293.40 per share. The shares of the company saw a spurt in volume by more than 1.53 times on the BSE.

United Van Der Horst Ltd has announced that its Board of Directors has approved a 1:5 stock split. The move aims to make the company's shares more affordable and encourage participation from retail and small investors. The decision was taken during a board meeting held on Friday, September 26, 2025.

Under the proposed stock split, each existing equity share with a face value of Rs 5 will be sub-divided into five shares with a new face value of Rs 1 each. The corporate action is subject to approval from the company’s shareholders.

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Impact on Capital Structure

The main objective of the share sub-division is to improve liquidity in the stock market. While the number of shares will increase five-fold, the total value of the company’s share capital will remain unchanged.

• Pre-Split Capital: The authorized share capital stands at Rs 7,00,00,000, consisting of 14,000,000 equity shares of Rs 5 each. The issued, subscribed, and paid-up capital is Rs 6,89,43,500, comprising 1,37,87,400 fully paid-up shares of Rs 5 each and 2,600 partly paid-up shares with a paid-up value of Rs 2.5 each.
• Post-Split Capital: Following the sub-division, the authorized capital will remain Rs 7,00,00,000 but will comprise 70,000,000 equity shares of Rs 1 each. The issued, subscribed, and paid-up capital will increase to 68,937,000 fully paid-up shares of Rs 1 each and 13,000 partly paid-up shares with a paid-up value of Rs 0.50 each. The total value of the paid-up capital will remain Rs 6,89,43,500.

The company confirmed that it has only one class of shares—equity shares—and only these will be affected by the split

Earlier, the company ex-traded a stock split, dividing each existing Rs 10 equity share into two Rs 5 shares. The ex-date for the stock split was Tuesday, March 26, 2024.

United Van Der Horst, established in 1989, is a joint venture between UB Group (India) and Dr Van Der Horst B.V. (Holland), specialising in reconditioning and manufacturing services for core sectors. They harness patented chrome plating, specialised welding, and various machining techniques to offer reconditioning, re-standardising, reverse engineering, and manufacturing services to industries like marine, oil, power, petrochemicals, and mining. Their impressive clientele includes giants like Mumbai Port Trust, Oil India, Reliance Industries, and Indian Railways.

In December 2023, promoters bought 3,40,000 shares via conversion of warrants and now promoters own 72.07 per cent stake in the company compared to 70.44 per cent in September 2023. The company has a market cap of Rs 177.90 crore and reported positive numbers in its Quarterly Results and annual results.

The stock gave multibagger returns of 173 per cent from its 52-week low of Rs 88.65 per share and a whopping 2,125 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.