The D-street will witness two key stock splits by Angel One Ltd., and Fynx Capital Ltd. this week. Investors eyeing benefits of the stock split should be aware of the record dates set by these companies.
Fynx Capital has set its record date as Feb. 25 while Angel One's record date is Feb. 26. Both companies are splitting their shares in the ratio of 1:10. Accordingly, each fully paid-up equity share of Rs 10 face value will be reduced to 10 fully paid-up equity shares having face value of Re 1.
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 instance, in the case of Angel One and Fynx Capital, one equity share with a face value of Rs 10 will be split into 10 equity shares with Re 1 as the face value.
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 Prices
- Shares of Angel One ended 0.53% lower at Rs 2,496.30 apiece on the NSE, compared to a 0.46% advance in the Nifty index on Friday.
- Similarly, Fynx Capital's stock ended 1.51% lower at Rs 65.44 apiece on the BSE, compared to a 0.38% advance in the Sensex index on Friday.
ALSO READ: 'Sell Bitcoin Now!': Peter Schiff Warns Investors Of Crypto Plunging Up To $20,000
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
