1:10 Stock Splits To Look Out: 2 Stocks To Trade Ex-Split This Week, Gains 76-123% YTD; Last Date To Eligible?

Two stocks are set to split this week. One of them is a penny stock engaged in the business of textile, while the other is a smallcap in the NBFC sector. Both stocks will turn ex-split between September 19 to September 20, in the ratio of 1:10 each.

Generally, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

The two stocks have gained by 76% to 123% on BSE in 2024 so far. To eligible for the stock split benefits, investors must hold these companies shares in their demat account by end of record date.

1. Nandan Denim Stock Split:

This textile penny stock ended in red on September 16, to Rs 62.83 apiece down by 2.85% on BSE with market cap of Rs 905.68 crore. However, on Monday, the stock did touch an intraday high of Rs 67, which was very close to its 52-week high of Rs 67.50 apiece. While the stock has more than tripled from its 52-week low of Rs 20.45 apiece.

However, YTD, the stock has emerged as a multibagger with gains of nearly 123% on BSE.

As per the regulatory filing, the company has fixed Thursday, September 19, 2024, as the "Record date" for determining the eligibility of Shareholders for Sub-division/ split of existing Equity Shares of the Company from Face Value of Rs. 10/- each fully paid-up to Face Value of Re. 1/- each fully paid-up, ranking pari-passu in all respects.

Hence, the stock split ratio is 1:10 ahead.

This is the third stock split by Nandan Denim in nearly two decades. The first stock split by the company was 1:10 in November 2005, where the face value was reduced from Rs 10 each to Rs 1 each. And, then further Nandan carried a reverse stock split in March 2012, where its face value was back to Rs 10 each from earlier Rs 1.

Nandan Denim Limited (NDL) is India's leading and the world's fourth-largest integrated denim fabric maker. The company commenced its operations in 1994 with a textile trading business and forayed into textile manufacturing in 2004. Nandan Denim currently engages in the manufacturing of denim fabric, shirting fabric and yarn.

2. Fedders Holding Stock Split:

An NBFC firm, Fedders Holding's share price stood at Rs 1,030.55 per share with a market cap of Rs 1,761.89 crore. On September 16, the smallcap stock touched a new 52-week high of Rs 1,047.70 apiece, while it has more than doubled from a 52-week low of Rs 400 apiece.

YTD, the stock has advanced by over 76% on BSE.

The company has fixed Friday, 20' September 2024 as the "Record date" for determining the eligibility of members for the purpose of sub-division of the equity shares of the Company from Face Value of Rs. 10/- each fully paid-up to Face Value of Rs. 1/- each fully paid- up. Accordingly, the stock split is of a 1:10 ratio as well.

This is the first-ever stock split of Fedders Holding.

Fedders Holding Ltd. (the 'holding company') owns subsidiary companies, manages investments, and provides strategic direction to the subsidiaries including Fedders Electric and Engineering Limited (FEEL). The Company envisions to oversee the full spectrum from iron ore mining through to TMT bar manufacturing, encompassing activities like iron ore beneficiation, and steel billet production.