D-Street will witness one key stock split by R & B Denims Ltd. this week. Investors eyeing benefits of the stock split should be aware of the record dates set by these companies.
R & B Denims Ltd. has set its record date as April 3. The purpose of the stock split is to determine the members eligible for issue of bonus equity shares in ratio 1:2 i.e bonus equity share for every two equity shares held.
R&B Denims, founded in 2012, pioneered denim production in Surat, India's polyester hub. Inspired by the rhythmic process of crafting iconic blue indigo denim, our brand embodies the motto: "Rhythm & Blue."
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What Is 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 increase, the total investment value remains unchanged.
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.
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