1:10 Stock Split Declared: Shares To Become Cheaper; Buy Penny Stock Below Rs 25?

A firm with its headquarters in India, Quasar India Limited deals and trades in a wide range of products, commodities, and business supplies. With a market valuation of Rs 12.17 Cr, Quasar India is a micro-cap company that is listed on the BSE. Tuesday saw a 1.98% drop in Quasar India's share price at Rs 22.73 per share following the company's announcement of a 1:10 stock split.

Quasar India Stock Split

The Board of Directors "Recommended Sub-Division of 1 (one) Equity Share of face value of Rs. 10/- (ten) each fully paid up into 1 (one) Equity Shares of Rs. 1/- (one) each fully paid up, resulting in issuance 10 (ten) Equity Shares of Rs. 1/- (one) each fully paid up, thereby keeping the paid up capital intact, subject to the approval of the Members in the ensuing Extra Ordinary General Meeting," said the company in a stock exchange filing on 23rd September, 2024.

The rationale behind the stock split is to improve the liquidity of the company's equity shares in the stock market and to make the shares more affordable to small investors, as per Quasar India.

Quasar India Stock Split Record Date

"Upon Sub-Division of equity shares, as aforesaid, the existing share certificate(s) in relation to the existing equity shares of the nominal value of Rs. 10/- (Rupees Ten only) each held in physical form shall be deemed to have been automatically cancelled and be of no effect on and from the "Record Date" to be fixed by the Company and Company may without requiring the surrender of existing share certificate(s) directly issue and dispatch the new share certificate(s) of the Company, in lieu thereof, subject to the provisions of the Companies (Share Capital and Debentures) Rules, 2014 and in the case of members who hold the equity shares / opt to receive the sub-divided equity shares in dematerialized form, the subdivided equity shares of nominal value of Re. 1/- (Rupee one only) each shall be credited to the respective beneficiary account of the members with their respective depository participants and the Company shall undertake such Corporat Action(s) as may be necessary in relation to the existing equity shares of the Company," said Quasar India in a regulatory filing.

"The remote e-voting period begins on Monday, 14th October, 2024 at 9:00 A.M. and ends on Wednesday, 16th October, 2024 at 5:00 P.M. The remote e-voting module shall be disabled by NSDL for voting thereafter. The Members, whose names appear in the Register of Members / Beneficial Owners as on the record date (cut-off date) i.e. Thursday, 10th October, 2024 may cast their vote electronically. The voting right of shareholders shall be in proportion to their share in the paid-up equity share capital of the Company as on the cut-off date, being Thursday, 10th October, 2024," the company further informed stock exchanges.

Quasar India Share Price Target

"Quasar India stock price is bearish on the Daily charts with strong resistance at 25.40. A Daily close below support of 22.2 could lead to a target of 18.8 in the near term," said A R Ramachandran, Independent Research Analyst.