Shiv Aum Steels proposes 1-for-5 split with capital unchanged

Shiv Aum Steels Limited has proposed a 1-for-5 equity-share split, subject to shareholder approval, under which each fully paid Rs 10 share would become five fully paid Rs 2 shares while paid-up and subscribed capital remains Rs 13.60 crore. The company says the measure is intended to improve liquidity and affordability.

What is Shiv Aum Steels proposing in the share split?

Shiv Aum Steels is proposing to subdivide every one existing fully paid equity share of face value Rs 10 into five fully paid equity shares of face value Rs 2 each. The disclosed split ratio is 1:5, so a holding of 100 existing equity shares would become 500 equity shares after the subdivision takes effect.

The proposal changes the denomination and number of equity shares, not the rupee amount of capital. Shiv Aum Steels has stated that its authorised, issued, subscribed and paid-up share-capital amounts will not change as a result of the subdivision. The filing identifies equity shares of Rs 10 each as the class being subdivided and says the company has issued only one class of equity shares.

The issued, subscribed and paid-up base would rise from 1,36,00,400 equity shares of Rs 10 each to 6,80,02,000 equity shares of Rs 2 each. In both cases, the disclosed issued, subscribed and paid-up capital is Rs 13.60 crore. The fivefold increase in the number of shares corresponds to the reduction in face value from Rs 10 to Rs 2.

Why does Shiv Aum Steels want to split its shares?

Shiv Aum Steels says the 1:5 subdivision is intended to enhance the liquidity of its equity shares in the stock market and make them more affordable. Management has also said the proposal is intended to encourage participation by retail and small investors and broaden the shareholder base.

The filing does not provide a market-price target, a projected trading-volume increase or a numerical target for new retail participation. Instead, it sets out the mechanism behind the proposal: each Rs 10 share would be replaced by five Rs 2 shares, while the paid-up and subscribed capital remains Rs 13.60 crore.

Affordability and liquidity are management’s stated reasons rather than quantified outcomes of the split. The company has not disclosed an estimated administrative cost or a date by which it expects the stated objectives to be achieved. Its Annexure B disclosure focuses on the lower Rs 2 face value and the resulting higher number of equity shares.

How will Shiv Aum Steels’ authorised capital structure change?

Shiv Aum Steels’ authorised capital would remain Rs 15 crore, but the authorised equity-share count would increase fivefold to 7,50,00,000 shares of Rs 2 each from 1,50,00,000 shares of Rs 10 each. This change mirrors the proposed 1:5 split in the issued, subscribed and paid-up equity base.

The authorised capital is distinct from the issued, subscribed and paid-up capital of Rs 13.60 crore. Before the proposal, the latter consists of 1,36,00,400 shares of Rs 10 each; after the proposal, it would consist of 6,80,02,000 shares of Rs 2 each. Both structures produce the same disclosed capital amount.

Shiv Aum Steels also says that the disclosure concerning shareholders who could receive no shares in a consolidation is not applicable. That is because this transaction is a subdivision, not a consolidation: every existing Rs 10 equity share is to be converted into five Rs 2 equity shares.

What Memorandum of Association change will Shiv Aum Steels make?

Shiv Aum Steels proposes to amend the capital clause of its Memorandum of Association, or MOA, so that it reflects 7,50,00,000 equity shares of Rs 2 each instead of 1,50,00,000 equity shares of Rs 10 each. The authorised capital stated in both the existing and proposed clauses is Rs 15 crore.

The MOA amendment aligns the company’s constitutional capital clause with the proposed new face value. The existing clause describes Rs 15 crore divided into 1,50,00,000 shares of Rs 10 each, while the proposed clause describes the same Rs 15 crore divided into 7,50,00,000 shares of Rs 2 each.

The filing presents the amendment alongside disclosures required under the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015. It also cites a SEBI master circular dated January 30, 2026. The disclosed action is specifically a share subdivision, rather than a bonus issue, capital increase or consolidation.

When will Shiv Aum Steels announce the split record date?

Shiv Aum Steels has not announced a record date for the proposed 1-for-5 split. It says the record date for the subdivision will be intimated to the stock exchange in due course, and that completion will occur within the prescribed timeline, if any.

The company has also not disclosed a shareholder-meeting date, an effective date or a trading-adjustment date in the supplied filing. The proposed split remains subject to shareholder approval, after which the record date would identify the holders entitled to receive five Rs 2 shares for every Rs 10 share held.

The filing does not set out a timetable beyond the statement on prescribed timelines. It does, however, specify the full planned capital conversion: authorised equity shares would move from 1,50,00,000 to 7,50,00,000, while issued, subscribed and paid-up shares would move from 1,36,00,400 to 6,80,02,000.

Conclusion

Shiv Aum Steels’ proposed 1-for-5 split would lower the face value of each equity share from Rs 10 to Rs 2 and increase the issued, subscribed and paid-up share count from 1,36,00,400 to 6,80,02,000. The disclosed financial effect is that paid-up and subscribed capital remains Rs 13.60 crore, while authorised capital remains Rs 15 crore.

The next matters to watch are shareholder approval, the proposed MOA amendment and the company’s record-date announcement to the stock exchange. Shiv Aum Steels says the subdivision will be completed within any prescribed timeline, but the filing does not disclose a specific completion date.