1:10 Stock Split: Penny Stock Under Rs.100; Record Date November 29; BUY?

Vivid Mercantile Ltd. announced a stock split. The Board of Directors approved the proposal for a stock split, reducing the face value of the company's equity shares from Rs.10 to Rs.1 each, after shareholder approval. This 1:10 stock split means that each existing share with a face value of Rs. 10 will be divided into 10 new shares, each with a face value of Re. 1.
Importantly, this split will not affect the overall ownership or rights of shareholders. The new shares will carry the same voting rights and dividend entitlements as the original shares. the company is dividing its existing shares into smaller denominations without altering the underlying value or ownership structure.

Record date for Vivid Mercantile Ltd stock split:

The board of Vivid Mercantile has previously fixed the record date for the stock split as Friday, November 01, 2024 later revised it to 29th November that is today.

Shares Price Movement

Vivid Mercantile shares, which closed at ₹65.61 in the previous trading session, faced a massive 89.89% drop today, opening sharply lower at ₹6.95. This dramatic decline comes after a period of relative stability, with the stock trading within a narrow range over the past five days and maintaining a steady trajectory throughout the month.

The stock has experienced a turbulent journey this year. After peaking at its 52-week high of ₹87.20 in March, it showcased impressive gains of over 50% earlier in the year. However, today's steep fall has brought it perilously close to its 52-week low of ₹4.41, wiping out much of the confidence investors had built during its earlier performance.

Since its debut on the markets in 2018, with a listing price of ₹40.67, Vivid Mercantile has been largely profitable, carving a niche in its sector. Despite its strong showing earlier this year, today's drastic sell-off has sparked widespread apprehension. Market participants are now questioning the reasons behind this unexpected plunge and its implications for the company's future. Analysts are closely monitoring the situation, as such significant price movements often stem from fundamental shifts, regulatory actions, or broader market sentiments. Investors are advised to exercise caution while awaiting clarity on what drove the sharp correction.

About Vivid mercantile

Established on March 4, 1994, this company initially operated in the retail and wholesale trade sectors. Over time, it shifted its focus to real estate development. Currently, the company specializes in acquiring land, constructing residential properties and infrastructure, and marketing these projects. Their ongoing project in Ahmedabad, covering approximately 7.34 hectares, involves land development and plotting. The company is actively preparing the land for future development by leveling, filling, and creating boundaries to facilitate the sale of plots in various sizes.