Jubilant Foodworks To Soon Turn Ex-Split On April 19, 2022

This company operating Dominos will soon i.e. on April 19 turn ex-split changing its face value from the previous Rs. 10 to the new face value of Rs. 2.

About the stock split of Jubilant Foodworks

The company in a filing informed of the change in the capital of the company by sub-division/split of existing equity share of the Company from one 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, subject to the approval of shareholders of the Company.

The ex-date for the same is April 19 and the record date is April 20, 2022

How will the stock split impact share price?

As the name suggests in a split there is an increase in the number of shares based on the face value nevertheless there is no change in the investment value or market cap. Say if previously the face value has been Rs. 10 and the new face value is Rs. 5 then the stock split has occurred in the ratio of 1:2. Also, in the case there is a change in the stock price in the ratio of the stock split, supposing as in the current case 1:5 stock split then the price shall be reduced by 1/5th and on the split date or the ex-split date when the stock adjusts for the corporate action there be a reduced price for the shares of Jubilant Foodworks.

What's in for investors from the stock split of Jubilant Foodworks?

Jubilant Foodworks is a QSR stock and in the times to come with the spending power of individuals increasing and given their eating habits, there is a likelihood that the stock shall gain more traction.

So, for the invested community, while they need to ensure that they get 5 times the holding in the scrip post the stock split, new investors or potential investors can enter it at a much cheaper rate.

Disclaimer:

We have just collated the information around the stock split of Jubilant Foodworks and this story in no way should be construed as an investment advice in the stock. Though one of the main reasons of a stock split is to attract new investors.

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