With the stock markets booming, promoters are falling upon themselves to add to the liquidity in their stocks through stock splits.

A stock split typically reduces the value of the share to the extent of the split, thereby making even high priced stocks accessible to retail investors.

In the last bull run of 1999-2000, promoters of information technology companies were the first to go for stock spilts.

This time round, it is the turn of the promoters of pharmaceutical and old economy companies to queue up for stock splits.

As many as 11 companies have proposed stock splits in the last three months. The boards of these firms have proposed to split these shares to increase liquidity in the markets.

The latest in the queue for stock splits is Aurobindo Pharmaceuticals which has proposed to split its current Rs 10 paid-up stock into two scrips of Rs 5 paid-up.

Glenmark Pharmaceuticals has proposed to split its Rs 10 paid-up share into five shares of Rs 2 each. Madras Cements is planning to split its shares from Rs 100 paid-up to Rs 10 each.

The board of directors of TVS Motors will meet on October 17 to consider the sub-division of its equity shares of Rs 10 each.

Similarly, the board of directors of Pentasoft Technologies is meeting on October 31 for sub-division of equity shares.

Mirc Electronics has informed the exchanges that the board of directors has resolved to subdivide the company's Rs 10 paid-up shares into a nominal and paid up face value of Re 1 per share.

A high share value acts as a restrictive factor in the upward movement of stocks. A Rs 100 paid-up share of Madras Cement, which is traded at around Rs 10,000, apart from being out of reach for most retail investors, looks costlier than when it is traded at Rs 1000 after a split into Rs 10 paid-up scrip.

In fact, news of an impending stock split has already acted as a booster dose for companies. The Aurobindo Pharmaceuticals scrip has appreciated 77 per cent from Rs 372.80 on July 1 to Rs 660.20 on Tuesday.

The Glenmark Pharmaceuticals scrip has gained 28 per cent to Rs 382 (Rs 297.85) and the TVS Motors scrip has appreciated 44 per cent from Rs 599.75 to Rs 862.35 in this period.

Last year, the Jubilant Organosys scrip almost tripled in value after its Rs 10 face value stock was split into Rs 5 paid-up shares.

Asahi India Glass gained 219 per cent, from Rs 32 to Rs 102.20 today, after its stock was split from Rs 10 to Re 1.

Similarly, the Motherson Sumi scrip surged 372 per cent from Rs 43.75 to Rs 203.55 after the stock was split from Rs 10 to Rs 5 paid-up.