Axis Bank shares traded higher on Monday after its shares went ex-split today. Its shares traded with over 2 per cent gains in spite of the broader market being subdued.
The bank had fixed July 30 as the record date for the stock split. Investors who hold the stocks in their demat account as on July 30, will be entitled to get 5 stocks of Rs 2 face value for each stock of Rs 10.
Companies prefer to go for stock split if market price of their shares goes up substantially making it difficult for retail investors to invest in the stock. Post stock split, liquidity of a share increases as lower market price attracts more retail investors into the stock.
As of 1.50 p.m. shares in Axis Bank traded 0.44 per cent higher at Rs 398.90 as against 0.65 per cent loss in Nifty.
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