1:5 Stock Split: Multibagger Smallcap Stock To Trade Ex-Split On November 2; Do You Own?

Garments and apparels manufacturer, Cantabil Retail India's share price will be in focus on Thursday as the stock will trade ex-split in the ratio of 1:5. Ahead of the ex-split date, Cantabil's share price witnessed buying sentiments. Cantabil in the smallcap basket has already emerged as multi-bagger in 5-year performance.

Cantabil has announced a stock split of a 1:5 ratio. Simply put, the ratio means that a sub-division of every 1 existing share having a nominal face value of Rs 10 each is to be sub-divided into 5 equity shares having a nominal face value of Rs 2 each.

For the stock split, Cantabil said the move is to boost the stock's liquidity and make it affordable for small investors, as per Cantabil.

The record date for the stock split is fixed on November 2, 2023, which is also the ex-split date. The expected time for completion of share splits is November 3rd, 2023.

In general terms, listed companies declare a stock split of already owned shares into much smaller shares. This 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.

Ahead of the ex-split date, Cantabil shares ended at Rs 1,131.30 apiece, up by 1.7% on BSE with an m-cap of Rs 1,847.14 crore.

From its 52-week low of Rs 800.50 apiece, Cantabil shares have rallied by over 41.3% on BSE. However, in 5 years, the stock price emerges as a multi-bagger with gains of a whopping 739%. Cantabil shares were at a meagre Rs 134.80 level on November 2, 2018.

Cantabil Retail India is in the business of designing, manufacturing, branding and retailing of apparel under the brand name of CANTABIL. The company has a network of over 450 exclusive retail outlets & employee strength of more than 3700 spread across India.

On Tuesday, the company announced that it has opened 16 New Showrooms/ Shops at different locations in India during the month of October 2023. Due to this, its total number of Showrooms/ Shops stands at 498.