Affle India surges 4% as Board to consider stock split plan

Shares of advanced 4 per cent to Rs 4,000 on the BSE in the intra-day trade on Tuesday after the company announced that it will hold a board meeting on August 26, 2021, to consider and approve split of equity shares of the company, subject to approval of the shareholders.

At 09:25 am, the stock was up 2 per cent at Rs 3,940, as compared to a 0.15 per cent rise in the S&P BSE Sensex. In the past three months, the stock has underperformed the market by falling 24 per cent as against a 10 per cent rally in the benchmark index. Moreover, it has corrected 36 per cent from its all-time high level of Rs 6,287, touched on March 5, 2021.

Affle, a leading adtech company in India, provides end-to-end offerings to advertisers through mobile advertising using its proprietary mobile audience as a service (MAAS) platform for customers. The company has two business segments, i.e. consumer platform and enterprise platform. The consumer intelligence platform delivers consumer engagement, acquisitions, and transactions for leading brands and B2C companies through relevant mobile advertising.

According to the proposal, Affle will sub-divide the face value of equity shares from Rs 10 each to a lower denomination to make the stock more affordable for the small retail investors and increase liquidity.

Stock split refers to splitting the face value of the shares of companies. Thus, when a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, the price per share goes down.

As on June 30, 2021, promoters held 59.89 per cent stake in Affle, according to shareholding pattern filed by the company. Among public shareholders, foreign portfolio investors held 18.25 per cent holding, followed by individual shareholders (8.85 per cent) and mutual funds (5.66 per cent).

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