1:10 Split: One Rs 180 Penny Stock Split Into Ten New Shares, Hits 5% Lower Circuit: Check New Price

Toymaker, OK Play India's share price froze at its 5% lower circuit on Monday when it turned ex-split for its ratio of 1:10. By the end of last week, OK Play India stood a little over Rs 180 apiece, and this one existing share price is now split into ten new shares, trading even below Rs 18 apiece.

OK Play India Share Price:

On BSE, on the ex-split day, OK Play India's share price ended at Rs 17.40 apiece, at a 5% lower circuit with a market cap of Rs 505.09 crore.

The stock has a 52-week high and low of Rs 21.50 and Rs 7.68 per share respectively.

Despite a lower circuit, the stock is currently higher by 126.6% from its 52-week lows.

On the last session of last week (March 7th), the stock stood at Rs 182.80 apiece on BSE.

As per BSE data, the earnings per share of the company is at (-) Rs 1.20, while its price-to-equity ratio is negative 152.44. Further, the price-to-book ratio is at 5.64, and the return on equity (RoE) is also negative at 3.70%.

OK Play India Stock Split:

The company fixed Monday, 11th March 2024 as the "Record Date" for determining entitlement of Equity Shareholders for sub-division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, will be sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid-up, ranking pari-passu in all respects.

Hence, the stock split ratio was of 1:10.

Only those shareholders will receive stock splits ratio in their portfolio, who held OK Play India's shares by the end of March 11 in their demat accounts.

Generally, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

About OK Play India:

Established in 1990, OK Play India Limited's mission is to become globally competitive in the field of plastic-moulded products by pushing the frontiers of possibilities with innovative and customized path-breaking solutions for diverse industries. The company's business is divided into four categories.

The company is one of the largest manufacturers of plastic moulded toys, fun stations, playground equipment, and children's furniture. It provides plastic of high quality which is used for fuel tanks and is compatible with 21st-century automobiles. Also, recently, the company introduced its indigenous range of electric vehicles and tapped into India's preventive healthcare sector with the introduction of the OK Play disinfection booth and the portable, foot-operated handwash station.

The company has two sprawling plants in Haryana and Tamil Nadu with over 500 dedicated employees.

On its website, Rajan Handa, the Founder said, "Starting with water tanks, toys, playground equipment and furniture, to top of the line and innovative alternative automotive components and now electric vehicles- our products touch all realms of society. The brand was built on a solid foundation of excellence, quality, novelty and customer satisfaction and I am satisfied that we continue to maintain and strive towards the same. OK, Play is synonymous with quality and I am extremely pleased to say that our customer loyalty finds its roots in the same."

Disclaimer: The write-up is for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.