5:2 Stock Split: Record Date In Due Course; Buy The FMCG Stock To Be Eligible?

As of Thursday's closing session, Som Distilleries and Breweries Limited, a small-cap company in the FMCG industry, has left a market capitalization of Rs 2,336.94 Cr. One of the top companies in India, SOM Group offers a remarkable array of brands encompassing Spirits, Beer, and Alcopop. founded three decades ago. The BSE saw a 5.16% spike in the share price of Som Distilleries and Breweries today, closing at Rs 301.50 per, after the Board of Directors' announcement of a 5:2 stock split.

Som Distilleries and Breweries Stock Split

"The Board considered and approved the Sub-Division of share capital of the Company. The Board considered Sub-Division of each of the Equity Share Capital of face value of Rs.5/- each into equivalent Number of Equity Shares having a face value of Rs.2/- each ("Sub-division") and consequent alteration in Clause V of Memorandum of Association of the company as per the provisions of the Companies Act, 2013 and applicable SEBI Regulations subject to requisite approvals and approval of the shareholders in the general meeting," said Som Distilleries and Breweries in a regulatory filing on 2nd April.
The stock split has been announced "With a view to broad base the investor base by encouraging participation of the retail investors and also to increase the liquidity of the Company's Shares," said the company in a stock exchange filing.

Som Distilleries and Breweries Stock Split Record Date

"Pursuant to the sub-division of the equity shares of the Company, all the issued, subscribed and paid up equity shares of face value of Rs.5/- (Rupees Five only) each of the Company existing on the record date to be fixed by the Company shall stand sub-divided into equity shares of face value of Rs.2/- (Rupees two only) each fully paid up, and shall rank pari passu in all respects with the existing fully paid equity share of Rs. 5/- each of the company and shall be entitled to participate in full dividend to be declared after subdivided Equity shares are allotted. 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.5/- (Rupees five only) each held in physical form shall be deemed to have been automatically cancelled and be of no effect on and from the "Record Date" to be fixed by the Company and Company may without requiring the surrender of existing share certificate(s) directly issue and dispatch the new share certificate(s) of the company, in lieu thereof, subject to the provisions of the Companies (Share Capital and Debentures) Rules, 2014 and in the case of members who hold the equity shares / opt to receive the sub-divided equity shares in dematerialised form, the subdivided equity shares of nominal value of Rs.2/- (Rupee two only) each shall be credited 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 of the Company," said Som Distilleries and Breweries in a regulatory filing.

Som Distilleries and Breweries News

"At the Board meeting held on April 2, 2024, the Directors of the Company put forward the proposal to change the name of the Company to "SOM DISTILLERIES AND BREWERIES LIMITED". As there were numerous approvals from various state excise authorities, which was proving to be cumbersome, it was felt by the management to revert to the old name so as not to affect the business operations of the company. The Board of Directors discussed the same and is of the opinion that the name of the company be changed from 'SOM DISTILLERIES BREWERIES & WINERIES LIMITED to SOM DISTILLERIES AND BREWERIES LIMITED'," said the company in a separate regulatory filing.

Som Distilleries and Breweries Sales Update

"We are thrilled to share with the stock exchanges our unparalleled success in beer sales within Karnataka during March. Achieving our highest-ever sales in a month since entering Karnataka is a remarkable feat. This significant milestone speaks volumes about the company's performance, particularly as we have initiated trial production on our expanded capacity," said Som Distilleries and Breweries in a stock exchange filing on Thursday.

Som Distilleries and Breweries Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said SDBL, currently trading at 295.65 levels, exhibits robust technical strength with support near 270 levels. The stock demonstrates resilience, trading comfortably above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, signalling a bullish outlook.

With a minor resistance noted near 310 levels, a breakout above this level could catalyze a significant upward move towards the next resistance at 335 and beyond. Investors holding positions from lower levels may consider booking partial profits at the current market price (CMP) and implementing a trailing stop loss near the support levels of 270 to protect gains.

For fresh investment, prudent entry points may be identified on dips to around 285 levels. Setting a stop loss at 270 levels ensures risk mitigation, while short to medium-term targets are set at 310 and 335 levels, offering potential upside opportunities.

By adhering to disciplined risk management practices and capitalizing on strategic entry points, investors can navigate market fluctuations while optimizing potential returns in SDBL.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.