1:5 Stock Split, First Ever: Metal Penny Stock Falls By 4.6% On Ex-Date; Check New Price

Metal company with penny stock status, Abans Enterprises Ltd, has split into the ratio of 1:5. On the ex-data aka Tuesday, October 15, the stock is below Rs 40. This is the first ever spit by the company. The stock's price-to-equity ratio is at 20.55x, while the return on equity is at 12.58%.

Abans Enterprises Share Price:

On the ex-date, the stock price ended at Rs 38.25 apiece on BSE, down by 4.61% with a market cap of Rs 266.79 crore.

Adjusted to the stock split ratio, the new 52-week high and low for Abans Enterprises are at Rs 42.20 apiece and Rs 22.28 apiece respectively. The 20% upper circuit and lower circuit levels are at Rs 45.90 apiece and Rs 45.90 apiece.

Earnings per share is at Rs 1.86 apiece.

Abans Enterprises Stock Split:

The company split for the first time in the ratio of 1:5 on October 15, which is the record date for determining the entitlement of Equity Shareholders, for the purpose of 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, be sub-divided into 5 (five) equity shares having face value of Rs. 2/- (Rupees two only) each, fully paid- up.

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 Abans Enterprises:

Abans Enterprises Limited ("AEL") was incorporated on 2nd February 1985. Presently, AEL is listed on BSE Limited and Metropolitan Stock Exchange of India Limited (MSEI). Matru-Smriti Traders Limited was taken over by Mr. Abhishek Bansal on February 25, 2015.

Following the takeover of the Company and to reflect the group name, the name of the Company was changed to "Abans Enterprises Limited". AEL is involved in the business of trading in Commodities, agri-commodities, Precious Metals, Shares, Currencies and all kinds of Derivatives over all the leading Exchanges and also in the Spot Market.