This Multibagger Textile Stock Decides On Stock Split: Check Details

Stock spit is a decision taken by the company's board which results in the sub-division of the company's existing shares into more number of shares. Eventually there is no change in the value of investment for the investor but market value of a single share is reduced in proportion to the number of shares extracted out a single share.

Likewise, here is a textile company that has announced stock split:

About the company:

PDS Ltd: PDS Multinational Fashions Limited is engaged in the trading of garments. The Company's subsidiaries are engaged in investment holding, design, development, marketing, sourcing and distribution of readymade garments of all kinds. The company is a small cap scrip.

Stock split

he split/ sub‐division of 1 Equity share of the Company having Face Value of ₹10/‐ each into 5 (Five) Equity Shares having Face Value of ₹2/‐ each. The Record Date for the split/ sub‐division of Equity Shares shall be decided by the Board and will be intimated to the Stock Exchanges in due course. So, the split shall be in 5:1 ratio.

Stock price change post the split

So, the split shall reduce the price of the stock currently trading for Rs. 1741.2 by 1/5 time i.e. it will become Rs. 348.24 and investors in the stock as on the date will receive will be entitled to get 500 shares of the same in case they own 100 shares before the split.

Disclaimer

The above information is just for information about the stock split and is not a recommendation to buy in the share.