10:1 Stock Split: Record Date To Be Declared Soon, Target Rs. 960-1150, Stop-Loss Rs. 740; Buy Range?

In India, a private company called Fedders Holding Ltd., formerly known as IM+ Capitals, is involved in the Non-Banking Financial Company (NBFC) industry. IM+ Capitals Ltd. was founded in 1991 and is a financial and investment business. Fedders Holding is probably going to be on small-cap investors' radar screens because the company recently announced its first-ever 10:1 stock split. This move was made to increase the company's share base in the stock market by encouraging participation from a wider range of investors and to improve the liquidity of the company's shares.

Fedders Holding Stock Split

The Board of Directors have "Recommended the proposal of sub-division of equity share of face value of Rs. 10 /- each fully paid up into equity shares of face value of Re. 1/- each fully paid up at the "Record Date" to be determined as authorized by the Board of Directors, subsequent to the approval of the shareholders in General Meeting of the Company," said the company in a stock exchange filing.

"Pursuant to the sub-division of the equity shares of the Company, all the issued, subscribed and paid-up equity shares of the Company having nominal value Rs. 10/- (Rupees Ten Only) each fully paid existing on the Record date to be fixed by the Company shall stand sub divided into equity shares of nominal value Re. 1/- (Rupee One Only) each fully paid up, without altering the aggregate amount of such capital and such shares shall rank pari - passu in all respects with the then existing equity shares with effect from the record date," Fedders Holding informed stock exchanges.

Important Note For Investors On Stock Split By Fedders Holding

"Upon sub - division of equity shares as aforesaid, the existing share certificate(s) in relation to the existing equity shares of the nominal value of Rs. 10/- (Rupees Ten Only) each held in physical form shall be deemed to have been automatically cancelled with effect on and from the Record Date to be fixed by the Company and the Company may, without requiring the surrender of the existing share certificate(s), directly issue and dispatch the new share certificate(s) of the Company with equity shares of nominal value of Re. 1/- in lieu of such existing share certificates subject to the provisions of the Companies (Share Capital and Debentures) Rules, 2014 and in case of Members who hold the equity shares in dematerialized form, the sub - divided equity shares of nominal value of Re. 1/- each shall be credited proportionately to the respective beneficiary account of the Members, with their respective depository participants and the Company shall undertake such corporate actions as may be necessary in relation to the existing equity shares, whether in physical form or in dematerialized form," said Fedders Holding in a regulatory filing.

Fedders Holding Share Price Target

"Fedders Holding Ltd. is currently trading at Rs. 918. However, based on its current positioning I suggest traders and investors wait for a dip. Notably, the ideal buying range for this stock would be between Rs. 820 and 850. In my opinion, the stock has the potential to reach the target range of Rs. 960-1150. However, to manage the risk, I advise setting a stop loss at Rs. 740, especially when holding for 10 to 20 weeks," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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