RDB Infrastructure And Power Announces 10:1 Stock Split, Secures New Contracts; Check Split Date Here

RDB Infrastructure and Power Limited has announced a 10:1 stock split of its equity shares to enhance liquidity and diversify its investors. The split will consolidate and divide the equity stock of each face value of Rs 10 into ten stock units of Rs 1 each. The record date for the stock split is noted as Friday, February 28, 2025.

The company is seeking to target institutional and retail investors and thus aims to increase liquidity by making the share prices lower. This action will most likely appeal to new investors and increase the overall circulation of the stocks.

Along the lines of stock split, RDB Infrastructure and Power Limited was able to secure multiple new contracts which are likely to increase the company revenues in the infrastructure and in the renewable energy markets.

The company has been awarded two contracts from Tarmat Limited for infrastructure development at Mumbai's Chhatrapati Shivaji Maharaj International Airport. First, construction and strengthening of the perimeter road valued at Rs 35.40 crores second civil work of Taxi-way "M" Phase-1 at Rs 23.60 crores. Tarmat Limited is ranked among the leading companies in undertaking and executing diversion and new construction works. Their finance branch is under the RDB group and so YMS Finance, a promoter of RDB Infrastructure and Power, holds 4.63% shares in the company.

Further alongside this in renewable energy, RDB Infrastructure and Power Limited has also parallels with Damodar Valley Corporation (DVC) by securing two other contracts and thus increasing its growing portfolio.

The first agreement of a previously provided scope of work includes the installation of grid-connected rooftop solar PV plants on DVC buildings situated within West Bengal and Jharkhand along with the supply of equipment for the operations and maintenance contract for five years. This will cost Rs 7.51 crore. The second contract, which will last for 5 years, is for the upkeep of current rooftop solar plant buildings up to 10MWp and will come at a value of Rs 42.76 lakh.

Significant business growth was noted during the recent quarter. The company recorded a 251% increase in its net sales, reaching Rs 24.18 crore in Q3 FY25 compared to the same quarter of the previous year. Net profit also grew by 88%, amounting to Rs 1.78 crores. The nine-month period ending in December 2024, the company reported net sales of Rs 87.36 crores with an overwhelming net profit of Rs 4.38 crores, representing a growth of 23%. For FY2024, the company reported Rs 67 crore in net sales for the year with Rs 3 crore in net profits indicating steady results.

The stock returns have been impressive with the stock reaching an all-time high of Rs 612.65, a low of 115.88. In one year the stock returned 220% and in five years the company registered a significant return of 2560%. The market capitalization of the company is more than 900 crores, its promoters held 70.42% and the public owned 29.58%.

RDB Infrastructure and Power Limited, previously known as RDB Realty and Infrastructure Limited, is one of the largest companies in India associated with real estate business and solar power services since its foundation in 1981.

As a leader in residential and commercial developments including high-rise apartments, integrated townships, offices, and shopping malls, the company operates in Kolkata, Mumbai, and Hyderabad. The company is recognized for its innovative and high-quality residential and commercial spaces with a strong emphasis on customer satisfaction and sustainable development.

Proposed stock splits, in conjunction with robust financial performance and competitive contract captures, set RDB Infrastructure and Power Limited up for growth. The company's development in infrastructure and its recent expansion into renewable energy correlate with the company's vision for sustainable development and increasing shareholder value.