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Dev Information Technology Announces Appointment of Independent Director and Share Split
Team Finance Saathi
21/Dec/2024
What's covered under the Article:
- Appointment of Bhavin Sanjaybhai Bhagat as Independent Non-Executive Director for five years starting December 20, 2024.
- Approval of a stock split, with each Rs. 5 share being split into Rs. 2 shares, aiming to increase liquidity and attract more investors.
- Alteration in the capital clause of the company’s Memorandum of Association to reflect the new share split structure.
Dev Information Technology Limited, a leading player in Cloud Services, Managed IT Services, and Digital Transformation, has announced significant corporate developments following the Extra-ordinary General Meeting (EGM) held on December 20, 2024. The shareholders have approved multiple key resolutions during the meeting, including the appointment of a new Independent Non-Executive Director and a sub-division of the company’s equity shares, enhancing liquidity and shareholder base.
Appointment of Bhavin S. Bhagat
The appointment of Mr. Bhavin Sanjaybhai Bhagat (DIN: 06461457) as an Independent Non-Executive Director for a term of five consecutive years was approved. His tenure will begin from the conclusion of the EGM, i.e., December 20, 2024, and will continue until December 20, 2029. Notably, he will not be subject to retirement by rotation during this period.
Mr. Bhagat brings a wealth of experience to the board, having been actively involved in business development, entrepreneurship, and investment banking. He is the founder of IndiaBizForSale.com, a platform for buying, selling, and funding businesses in India, and has significantly contributed to fostering entrepreneurship through his work with various incubation centers.
His experience in mergers and acquisitions, fundraising, and business development will be instrumental in steering the company towards its strategic objectives.
Share Split for Enhanced Liquidity
In a bid to enhance the affordability and liquidity of its shares, Dev Information Technology Limited has approved the sub-division of its existing equity shares. The existing equity shares of ₹5 each will be split into equity shares of ₹2 each. This move aims to make the shares more attractive to retail investors and widen the shareholder base. The record date for the share split will be announced in due course.
Alteration in Capital Clause
In line with the share split, the company has also altered the Capital Clause (Clause V) of its Memorandum of Association (MoA). The amended clause now reflects the new share structure of the company, with an authorized share capital of ₹20,00,00,000 (Rupees Twenty Crore) divided into 10,00,00,000 equity shares of ₹2 each. This alteration facilitates the upcoming split and aligns the company’s capital structure with its new share pricing model.
Shareholder Impact and Market Liquidity
The share split is expected to lead to a more liquid market for Dev Information Technology’s stocks by making individual shares more affordable and encouraging broader market participation. While the market price per share will decrease as a result of the split, the market capitalization of the company will remain unchanged. This strategic decision is aimed at enhancing the stock’s accessibility to a wider range of investors.
The company anticipates completing the share split within three months from the date of shareholder approval.
Future Outlook and Strategic Vision
These strategic decisions, particularly the appointment of a skilled new director and the share split, underscore Dev Information Technology Limited’s commitment to growth, transparency, and enhanced shareholder value. As the company continues to innovate in the fields of digital transformation and IT services, these changes are expected to pave the way for greater market participation and business expansion.