1:5 Stock Split: Multibagger Microcap Steel Stock Announces Share Split Proposal; Check Details

Indian equity benchmarks traded higher on Tuesday, with the benchmark Nifty 50 index rising 90.80 points, or 0.38 per cent, to 23,944.70. Amid the broader market strength, P S Raj Steels share  price were trading at Rs 418, up nearly 0.92 per cent, after the company announced an Extraordinary General Meeting (EGM) to seek shareholder approval for a Stock Split and other key proposals.

P S Raj Steels To Consider 1:5 Stock Split

P S Raj Steels has scheduled an Extraordinary General Meeting (EGM) on July 7, 2026, at its corporate office in Hisar, Haryana. One of the key agenda items is the approval of a sub-division of equity shares, whereby every one equity share with a face value of Rs 10 will be split into five equity shares with a face value of Rs 2 each.

The proposed stock split is aimed at increasing liquidity in the stock and making the shares more affordable for retail investors. Following the split, shareholders will receive five shares for every one share held on the record date, while the overall paid-up share capital of the company will remain unchanged.

Alteration Of Memorandum Of Association

To facilitate the stock split, the company is also seeking shareholder approval to amend Clause V of its Memorandum of Association relating to authorised share capital. Following the proposed subdivision, the authorised share capital will continue to remain at Rs 8 crore, but the number of authorised equity shares will increase from 80 lakh shares of Rs 10 each to 4 crore shares of Rs 2 each.

Similarly, the company's issued, subscribed and paid-up share capital will be reclassified from approximately 75.38 lakh equity shares of Rs 10 each to approximately 3.77 crore equity shares of Rs 2 each, without any change in the overall capital base.

Approval Sought For Related Party Transactions

Apart from the stock split proposal, shareholders will also vote on approval for material related-party transactions during FY27. The company has proposed transactions with related entities including Sheela Stainless Private Limited and Steelmint Industries Private Limited, covering sales, purchases, job work charges, freight expenses and other business transactions within prescribed limits.

EGM And Voting Details

The EGM is scheduled for July 7, 2026, while the record date has been fixed as June 30, 2026. Remote e-voting for eligible shareholders will commence on July 4, 2026, and conclude on July 6, 2026. The company has appointed CA Akanksha Chugh & Associates as the scrutinizer for the voting process.

About P S Raj Steels

P S Raj Steels Ltd is engaged in the manufacturing and processing of steel products and operates under the PSSR Group. The company supplies a range of steel products catering to industrial and infrastructure requirements and has established a presence in northern India through its manufacturing facilities and distribution network.

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