Stock Splits This Week: Tata Investment Among Seven Stocks To Trade Ex-Split—Check Record Dates
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share.
Several companies have announced stock split and revealed record dates for the same, heading into the new trading week. The list is headlined by Tata Investments and Gokul Agro while the likes of Rolex Rings, Narmada Macplast and AB Infrabuild are also headed for stocks splits this week.
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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 halving from Rs 10 to Rs 5.
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. Here is a look at companies that have declared stock splits with key dates coming up this week.
Stock Splits And Record Dates
Gokul Agro Resources has announced a stock split from Rs 2 to Rs 1 per share. The record date for the split has been fixed as Oct. 14.
Tata Investment Corporation has fixed Oct. 14 as the record date for its stock split from Rs 10 to Rs 1 per share.
Welcure Drugs & Pharmaceuticals has announced a stock split from Rs 10 to Rs 1 per share, with Oct. 16 as the record date.
A B Infrabuild has declared a stock split from Rs 10 to Rs 1 per share, with the record date set as Oct. 17.
Narmada Macplast Drip Irrigation Systems has announced a stock split from Rs 10 to Rs 2 per share, with Oct. 17 as the record date.
Rolex Rings has fixed Oct. 17 as the record date for its stock split from Rs 10 to Rs 1 per share.
Sunrakshakk Industries India has declared a stock split from Rs 10 to Rs 2 per share, with the record date set as Oct. 17.
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.
