HDFC goes for 1 into 10 subdivision of shares

The Housing Development and Finance Corporation (HDFC) has announced a 1 into 10 subdivision of its shares after getting shareholder approval through an extra ordinary general meeting subsequent to approval from the Colombo Stock Exchange.

Sub division proposal follows recent amendment to HDFC’s Act which specified the authorized capital of the entity will be Rs. 2 billion comprising 20 million shares of Rs. 10 each.

Its original authorised capital was Rs. 2 billion divided into 20 million shares of Rs. 100 each.

The corporation has 6,471,022 ordinary voting shares in issue which will translate to  64,710,220 after the subdivision. On Tuesday its share price rose Rs. 64.90 to Rs. 1,464.90 when 2,500 shares were traded.

The group’s income fell 2% to Rs.1.76 billion in the nine months to September 2011 as profits dipped 19% to Rs.199 million over the same period in 2010.

HDFC is a licensed specialised bank which was established in 1984 as a building society and subsequently converted to a public corporation under the Housing Development Finance Corporation Act in 1997 and susequently floated on the Colombo Stock Exchange in 2005. The Government has a 51% stake in the corporation. Board approval for the amendment was received at a board meeting held on 29 December 2011.