DU Digital Global has announced its stock split recently. The split date has been fixed for June 30, 2022. Earlier, the company stock's face value (FV) was 10, and the new face value will be 2.
DU Digital Global's current market price closed at Rs. 431 falling by 0.23%. Today, the company's share price opened at Rs. 443.00. The 52 week high level of this stock is Rs. 489.00, and 52 week low level of this stock is Rs. 95.00. In the past 1 year its stock price has surged by around 210%, since September 2021. It is a smallcap company with a market capitalization of Rs. 112.13 crore. After the stock split this month, the company's stock price is going to be more affordable for investors. The stock price will have to be divided by 5 from the current market price to estimate the new share price; however, market volatility will play a major role to fix the stock price.
About the company
DU Digital Global has a global presence and is specialized in administrative and non-judgmental tasks cognate to visa, passport, identity management, and other citizen services for its client governments. With over 35 centres in various countries, the company has successfully processed over 5 million applications since its inception and it is planning to expand to over 100 centers countrywide within the next 2 years, the company informs.
Commenting on the stock, simplywall.st said in a report, it is "One of the best investments we can make is in our own knowledge and skill set. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money."
What is a stock split?
A stock split means when a listed company's board decides to increase the number of its shares. It happens to enhance the stock's liquidity. At a time, when the company's stock price is quite high, and not affordable for investors to buy considerable numbers of shares, the company can initiate a stock split. So, the share price falls, however, the number of shares gains. With this, more investors can invest in the company. It is known that the market capitalization of a company is decided by multiplying the total number of shares outstanding by the rate per share. After the stock split, the market capitalization will not be changed, only the number of shares will be increased.