1:5 Stock Split Done: Smallcap Renewable Energy Stock Gives 1,028% Returns After Ex-Split: Do You Own?

Power generating company, Waaree Renewable Technologies split into five smaller shares on March 15th. And yet, Waree gives impressive returns. At the current price level, investors earn a whopping 1,028% gains in Waree. The stock's return on equity is also strong at 79.75%.

On March 15, as the stock turned ex-split for its ratio of 1:5, Waree Renewable's share price locked at 5% upper circuit to Rs 1,407.45 apiece on BSE with a market cap of Rs 14,658.49 crore. An upper circuit means that there were several buyers in the stock but no sellers.

Adjusted to the stock split, Waree's 52-week high and 52-week low are at Rs 1,641 apiece and Rs 124.79 apiece respectively. The upper circuit limit has now risen to Rs 1,477.80(5%), and the lower circuit stays at 1,337.10(5%).

The stock is currently up by 1,027.85% from its 52-week low.

As per the regulatory filing, the company fixed Saturday, March 16, 2024, as the "Record Date" for determining entitlement of Equity Shareholders for split/ sub-division 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 5 (five) equity shares having face value of Rs. 2/- (Rupee two only) each, fully paidup, ranking pari-passu in all respects.

March 16 is a market holiday due to Saturday, hence, those investors who have Waree shares in their demat accounts by the end of March 15 will be eligible for the stock splits ratio.

A 1:5 stock split ratio means that Waree's 1 existing share has split into 5 new shares. The face value was trimmed from Rs 10 to Rs 2.

Stock splits are corporate actions carried out by listed companies on stock exchanges globally. Some of the perks of stock splits are that they improve liquidity, raise demand for the stock, and increase appetite among new and existing investors as they become affordable.

This corporate action also enables listed companies to distribute gains of accumulated earnings without paying cash to the shareholders.

Waaree Renewables Technology Limited (WRTL) is a subsidiary company of Waaree Group and spearheading the Solar EPC business. Waaree Group has successfully installed 10000+ solar projects, with a total operating capacity of 600+ MW. It is also a solar developer that finances, constructs, owns, and operates solar projects. Headquartered in Mumbai, the company operates across geographies, focusing on long-term investments within the commercial and industrial customer segments. This subsidiary was formed to tap into the growing renewable energy market.

Notably, the Waaree Group is a leading renewable energy company that caters to Individual, Industrial, and Commercial customers by encouraging them to adopt energy solutions that help reduce the release of carbon. The Group provides clean energy to our clients by setting up both on-site solar projects (rooftop and ground-mounted) and off-site solar farms (open-access solar plants).

Disclaimer: The write-up highlights the latest development in a stock split, 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.