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Bectors Food Specialities and Bharat Rasayan set record date for stock splits on Dec 12
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Stock splits increase shares by reducing face value without changing total investment value
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Investors must hold shares before record date to qualify for stock split benefits
Investors should note that Bectors Food Specialities Ltd. and Bharat Rasayan Ltd. have finalised their record date for its upcoming stock splits this week.
The record date for both Bectors Food Specialities Ltd. and Bharat Rasayan Ltd. is Dec. 12. D-Street investors eyeing split benefits must track record dates closely.
How Can Traders Become Eligible For A Stock Split?
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. For example, in the case of Paushak, every one share held will turn into two shares with the face value halvi
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.
Stock Splits And Record Dates
Bectors Food Specialities – Stock split with face value reduced from Rs 10 to Rs 2; ex-split and record date: Dec. 12.
Bharat Rasayan – Stock split from face value Rs 10 to Rs 5, effective Dec 12.
While these actions increase the liquidity of the stock by making the share price lower and more accessible to a wider range of investors, it is important to remember that they do not affect the overall market value of an investor's total holding. The total investment value remains unchanged as the share price adjusts proportionally to the split ratio on the ex-date.
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