New Delhi: Servotech Power Systems has split its shares into a ratio of 5:1 with effect from February 3, said the company's Managing Director Raman Bhatia on Monday. "The rationale behind the sub-division is to increase the liquidity and expand the shareholders' base. Also, the board has approved rewarding the existing shareholders in the form of dividends. The company would pay its shareholders an interim dividend of Re 0.20 per equity share subject to eligibility," Bhatia said in a statement.

According to the information provided by the company, the NSE-listed entity's equity share of the company of face value of Rs 10 each has been subdivided into five equity shares of the face value of Rupees two each.

The shares of the company were trading at Rs 48.55 apiece on NSE, 4.97 percent up from its previous close.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)