1:10 And 1:5 Upcoming Stock Splits: Two Smallcap Stocks To Trade Ex-Split Next Week; 8-26% Weekly Gains

Two smallcap stocks SG Mart and Remedian Lifecare recorded a strong trading week from February 12-17, ahead of turning ex-split. While SG Mart has announced share split of 1:10, Remedian declared stock split of 1:5 which is the second sub-division in less than six months. Both the stock garnered 8% to nearly 26% weekly gains.

Generally, stock split corporate action is done to improve liquidity by breaking the shares into smaller sizes. The face value of the shares reduces in proportion to the split ratio, however, there is no impact on the company's share capital and reserves. Although the price value of a stock reduces in a stock split, it the number of shares held rises in the investors' portfolio of that specific stock.

SG Mart Stock Split:

The company has announced the stock split in the ratio of 1:10. The ratio will lead to 1 (one) Equity Share of the Company having a face value of Rs 10/- each sub-divided into 10 (Ten) Equity shares of the company having face value of Rs 1 each.

The reason behind the stock split is to improve the liquidity of the Company's shares, to broaden the base of the share capital and to make it more affordable for small investors.

SG Mart is engaged in renewable energy generation services, operating solar & wind energy projects and even generating electric power.

In the trading week from February 12 to 16th, the stock price ended up by 8.2%. On Friday, the stock closed at Rs 11,258.35 apiece, up by 2% with a market cap of Rs 6,278.78 crore.

Remediun Lifecare Stock Split:

Remedium said that it fixed February 23, 2024, as the record date for shares sub-division having face value of Rs 5 each to Rs 1 each. On the record date, the company will determine eligible shareholders for the latest stock split.

Earlier, last year, Remedium shares turned ex-split on September 1, 2023, for a shares sub-division to the tune of 1:2. The company's stock split in the ratio of 1:2 meant that --- one existing equity share having a face value of Rs 10 each -- was sub-divided into two equity shares having a face value of Rs 5 each.

Also, the purpose of the split is to enhance the liquidity in the capital market, to widen the shareholder base and to make shares affordable/accessible to retail investors in the stock market.

During the trading week from February 12 to 17th, the stock ended by 25.74% to Rs 583.45 apiece, On Friday, the stock price ended at Rs 583.45 apiece, up by 8.14% on BSE.

Remedium Lifecare is engaged in the trading of pharmaceutical products and various raw materials used in the pharmaceutical industry including but not limited to Aminoisophthalic Acid, Tellurium(IV) Oxide, Grignard Reagent, Iodine, Selenium Metal Powder, Trimethyl Solfoxonum Iode(TMSI). With the Remedium Lifecare entered the Bombay Stock Exchange (BSE). The stock trades under the small-cap basket.

Disclaimer: The write-up just highlights stock splits and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.