1:5 Stock Split: Record Date On 12th April; Buy To Be Eligible?

As of Monday's BSE closing session, Sprayking Ltd., a small-cap company in the capital goods category, has a market valuation of Rs 235 Cr. The firm produces a variety of brass parts and components. In addition to producing and retailing garden fittings and agricultural sprayer components, it specialises in the production of copper forging products. This week, the stock is probably going to be in the spotlight since April 12th will serve as the stock's record date for the 1:5 stock split. Sprayking's shares closed at Rs 222.40 a share on the BSE on Monday. The stock reached a 52-week-high of Rs 300.20 on (08/02/2024) and a 52-week-low of Rs 79.17 on (10/04/2023).

Sprayking Stock Split Record Date

"We wish to inform you that pursuant to Regulation 42 of the SEBI (LODR) Regulations, 2015, the Board of Directors of the Company passed the Resolution at the Board Meeting held today, 01st April, 2024, and fixed the 'Record Date' on 'Friday, April 12, 2024 for the purpose of sub-division /split of each equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up into five (5) equity shares having face value of Rs. 2/- (Rupees Two only) each fully paid-up," said Sprayking in a regulatory filing on 1st April.

"This strategic move comes as part of Sprayking Limited's ongoing commitment to enhance shareholder value and improve liquidity in the market. The decision to split shares reflects the confidence the company has in its future growth prospects and its dedication to aligning its capital structure with market dynamics. Sprayking Limited has experienced strong financial performance in recent years, driven by a combination of product innovation, strategic partnerships, and a commitment to customer satisfaction. The stock split viewed as a proactive measure to position the company for sustained growth and to capitalize on future opportunities in the market," said the company in a stock exchange filing on February 26, 2024.

Sprayking Management Comments On Stock Split

Mr. Hitesh Dudhagara, Managing Director of Sprayking said, "We are pleased to announce the decision to split our shares in order to position Sprayking for continued growth and improved market accessibility. The decision to split our shares is a testament to our confidence in the company's growth trajectory and our ongoing commitment to delivering value to our shareholders. This strategic move not only enhances liquidity but also positions Sprayking for continued success in the marketplace. By reducing the face value from 10 to 2, we believe that our shares will become more attractive to a broader investor base. This move reflects our management's confidence in the long-term prospects of the company and our dedication to fostering a positive investment environment. This share split is a significant milestone for Sprayking Limited, and we believe it will contribute (to the overall strength and stability of the company. Shareholders can be assured that this decision is part of our ongoing efforts to optimize our capital structure and position Spraking for sustained growth."

Sprayking News

The foundry division of Sprayking Limited successfully launched on April 3, 2024, at a new production site that was acquired by the firm in July 2023. The facility spans 3000 square metres. With the opening of this foundry, the company has reached a major turning point in its growth trajectory. This accomplishment is the result of the company's commitment being met. With its impressive 200 tonnes of rods produced each month, the recently opened foundry plant strengthens Sprayking Limited's position as a major regional leader in the brass manufacturing industry.

Sprayking Share Price Target

"It's available at a discounted price and currently trading at 223, however, one can wait for more value buying in it. Looking good to buy in the range of 195 to 210 and we can expect targets ranging from 235 to 280 with stop loss at 180. We hold for 6 months for these targets," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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