Ajmera Realty Stock Split: Last Day To Buy Shares To Qualify Before Record Date

Shares of Ajmera Realty & Infra India Ltd. would be of market interest on Tuesday, Jan. 13, as it marks the last session for investors to buy shares to qualify for the stock split.

Ajmera Realty & Infra India will undergo its first-ever stock split on Wednesday. The board approved the plan for the subdivision of each share in the ratio of 1:5 in November. Each Ajmera Realty share with a face value of Rs 10 will be split into five shares of Rs 2 face value on the ex-date which is Jan. 14. The stock split will enhance affordability, making it more accessible to retail investors.

The record date for Ajmera Realty stock split for the purpose of determining the eligible shareholders is also Jan. 14.

A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly. This implies that while the value of stocks that a shareholder has does not change, the number of shares they hold will increase.

To be eligible for a stock split, investors must hold shares as of the record date announced by the company. The record date determines who will receive additional shares post-split, based on the split ratio. With India following the T+1 settlement cycle, investors need to purchase the stock at least one trading day before the record date to be eligible.

Buying shares on the record date itself won’t qualify, as the ownership won’t be reflected in time during trade.

Ajmera Realty and Infra India Ltd.'s profit falls 14.1% to Rs 30.4 crore in the second quarter of this financial year. This is in comparison to profit of Rs 35.4 crore in the previous quarter of this fiscal, according to its stock exchange notification on Thursday.

Revenue advanced by 9.6% year-on-year for the three months ended September, reaching Rs 219 crore. Operating income, or earnings before interest, taxes, depreciation, and amortization falls 4% year-on-year to Rs 58 crore. The Ebitda margin contracted to 26.5%.