BEML Sets Record Date For 1:2 Stock Split — Check Details

BEML has set Nov. 3 as the record date for the 1:2 stock split, according an exchange filing on Monday. The company will split one existing fully paid-up equity share of face value of Rs 10 into two paid-up equity shares of face value of Rs 5 each.

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. While the number of shares increases, the total investment value remains unchanged.

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.

BEML said the stock split is being undertaken to comply with government guidelines on capital restructuring, encourage wider participation of small investors, and enhance liquidity in the market.

The business update was shared after market hours. The stock settled 3.66% lower at Rs 4,053.70 apiece on the NSE, compared to a 0.08% decline in the benchmark Nifty 50. The shares earlier during the day fell as much as 4.61% to Rs 4,013.50 per share.

BEML shares have risen 9.23% in the last 12 months and fallen 0.37% year-to-date.

Out of four analysts tracking the company, three maintains a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target of Rs 4,761 implies a downside of 17.4%.