Small-Cap Stock Touches Lower Circuit After Board Sets Record Date For Stock Split; Time To Buy?

R&B Denims Limited, a Gujarat-based small-cap textile company, has declared record date for stock split. This action follows an Extra Ordinary General Meeting (EGM) held on March 13, 2026, where shareholders approved the split and an increase in authorised capital to facilitate a larger shareholder base and aid liquidity capital.

Following the announcement, the share price of R & B Denims Ltd (RNBDENIMS) was trading on the BSE at Rs 83.65 as of 1:13 PM IST on March 20, 2026. The stock is currently trading at its lower circuit, representing a decline of 5% from the previous close of Rs 88.05.

In an effort to determine which members are eligible for the subdivision of shares with a face value of Rs. 2 to Rs. 1 apiece, the board has set April 3, 2026, as the record date for a 1:2 stock split. In order to increase liquidity, the face value of equity shares would be lowered from Rs 2 to Rs 1 per share.

The company has outlined its pre and post-share capital structure following the proposed stock split, highlighting a clear change in the face value and number of equity shares while keeping the overall capital unchanged.

The firm is currently holding 12,75,00,000 equity shares with a face value of Rs 2 each, totalling Rs 25,50,00,000, under the authorized share capital. Following the split, the face value of each share would drop to Rs 1, and the number of authorized shares would double to 25,50,00,000 equity shares. Crucially, the split has no effect on the company's overall capital base because the entire authorized share capital would stay at Rs 25,50,00,000.

A proportionate adjustment will also be made to the issued, paid-up, and subscribed share capital. The corporation had 8,99,73,440 equity shares with a face value of Rs 2 apiece prior to the split, totalling Rs 17,99,46,880. Following the split, there would be 17,99,46,880 equity shares, each with a lower face value of Rs 1. The total paid-up capital would stay at Rs 17,99,46,880 despite this rise in the number of shares.

In a stock exchange filing dated February 14, 2026, the Board also considered and approved the issuance of Bonus equity shares in a ratio of 1:2, meaning that for every two fully paid-up equity shares of Re. 1 each held by the company's shareholders, one equity share of Re. 1/-each will be issued, subject to shareholder approval. The record date for this purpose has not yet been determined.

R&B Denims Target Price

"R & B Denims stock price is bearish and oversold with next support at 80 on the Daily charts. Investors should buy only if Daily close is above resistance of 88 could lead to a target of 97 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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