This Stock Has Fallen By 87.34% After Stock Split

The shares of Osia Hyper Retail, have fallen by 87.34%, after the stock split occurred on March 13, 2023. The announcement of stock split and record date was notified through an exchange filing. The details are given below.

As per the company's filing on national stock exchange (NSE), the board met on february, 27, 2023 and approved the sub-division/split of face value of 1 equity share of the face value of rs. 10/- per share into 1 equity shares of face value of re. 1/- per share.

The board of directors had agreed to set March 13, 2023 as the record date to split the face value of equity shares in the ratio of 10:1.

What is a stock-split?

A stock split is when a company issues more shares to its existing shareholders by reducing the face value of each share at a specified ratio (called stock-split ratio). The number of shares increase but the market cap remains the same, only the value per share changes, it reduces further. A face value is the nominal value per stock of equity share issued by the company.

Why did the stock fall?

The most common split ratios are 2-for-1 or 3-for-1 (sometimes denoted as 2:1 or 3:1). This means for every share held before the split, each stockholder will have two or three shares, respectively, after the split. The main reason for a company to announce stock split is to intentionally lower the price of a single share, to make the company's stock at a more affordable price without losing value.

About Osia Hyper Retail Ltd

Osia Hyper Retail Ltd opened the first store in Ahmedabad, Gujarat in 2014, in the name of "Osia Hypermart", by 2019, it opened 11 stores. It is a small medium enterprise that offers food, beverages, clothes, crockery, home appliances, cleaning items, furniture, handcraft, footwear, groceries, toys, games, and other related products. Osia Hyper Retail serves customers in India. Its IPO was launched in March 2019 at an issue price of Rs 252 per share. Its current market cap is Rs 35,371.50 lakh and the latest trading price is Rs 34.30 per share.

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