1:10 Stock Split: This SmallCap Stock Will Trade Ex-Split on Monday; Details Here

Smallcap stock, Akshar Spintex will be in focus on Monday as it will turn ex-split for the sub-division of its equity shares in the ratio of 1:10. Ahead of the ex-split, the stock ended the trading week from July 24th to 28th on a bullish note with an upside of nearly 7% on BSE. The stock's year-to-date performance is robust as well.

As per the regulatory filing, the company fixed July 31 as the record date for the purpose of sub-dividend of its equity shares. Hence, the stock will trade at ex-split on Monday.

The 1:10 ratio for stock split means that the company will subdivide every 1 existing share having a face value of Rs 10 each, into 10 equity shares having a face value of Re 1 each.

A listed company usually sub-divides its already-owned shares that are trading on exchanges into smaller shares. This is done to improve liquidity by breaking it into smaller sizes. Also, it reduces the proportion of the split ratio. There is no impact on the share capital and reserves of the company.

On BSE, the company's share price ended at Rs 78.13 apiece, up by 4.205 on Friday. The stock was near its intraday high of Rs 78.72 apiece.

Akshar Spintex shares have given robust returns in 2023 so far. The stock's monthly upside is nearly 17% on BSE, while half-yearly gains are more than 28%. Year-to-date, the stock has jumped 30%.

Currently, the company's 52-week high and low is Rs 133.90 apiece and Rs 29.65 apiece on BSE respectively.

The company is engaged in yarn manufacturing with products varying from carded, combed, slub yarn, core yarn, TFO yarn, Eli twist yarn, fancy yarn, melange yarn, blended yarn, and organic yarn. The company was incorporated in September 2013.

The company reported net loss of Rs 2.76 crore in FY23 versus net profit of Rs 7.02 crore in FY22. Revenue from operations stood at Rs 135.53 crore in FY23, as against Rs 172.11 crore in FY22.

It is yet to announce its June 2023 quarterly earnings for FY24.