Shares of Shriram Finance Ltd. fell by over 4% on Friday as the stock traded ex-split. The ex-date for the 1:5 sub-division of equity shares was January 10, meaning investors looking to benefit from the split needed to purchase shares before the market closed on Thursday.
The company had announced the stock split in late October 2024, following a board meeting on October 25. As per the decision, each fully paid equity share with a face value of Rs 10 will be subdivided into five fully paid equity shares, each with a face value of Rs 2.
A stock split is generally implemented to increase the number of outstanding shares and improve trading liquidity, making the stock more accessible to a broader range of investors.
Additionally, Shriram Finance had also declared an interim dividend of Rs 22 per equity share, with a face value of Rs 10, for the financial year 2025.
Shriram Finance is one of the leading non-banking financial company (NBFC) in India that offers financial services for personal, business, and family needs. The company was established in 1979 and is part of the Shriram Group, a financial conglomerate
The scrip fell as much as 4.69% to Rs 535.60 apiece. It pared losses to trade 4.65% lower at Rs 535.85 apiece, as of 10:04 a.m. This compares to a 0.62% decline in the NSE Nifty 50 Index.
It has risen 24.62% in the last 12 months. Total traded volume so far in the day stood at 0.35 times its 30-day average. The relative strength index was at 30.
Out of 41 analysts tracking the company, 39 maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data.
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