Stock Splits This Week: AGI Infra, Sigma Solve, Narmada Macplast — Check Record Dates
D-Street investors eyeing split benefits must track record dates closely.
Investors should note that Sigma Solve Ltd., AGI Infra Ltd. and Narmada Macplast Drip Irrigation System Ltd. have both finalised their record dates for upcoming stock splits this week.
The record date for Sigma Solve is Monday, while the record dates for AGI Infra and Narmada Macplast Drip Irrigation Systems are Oct. 10. 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 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
Sigma Solve is set to see a stock split from Rs 10 face value to Re 1 per share. The split will be 1:10 ratio and the record date is Oct. 6.
AGI Infra is also set to split from Rs 5 to Re 1 per share in the ratio 1:5. And the record date will also be Oct. 10.
Narmada Macplast Drip Irrigation Systems is set to split from Rs 10 to Rs 2 per share in the ratio 1:5. And the record date will also be Oct. 10.
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.
