3 Stock Split Stocks To Take Note Of

Stock Split is a corporate action in which a listed company divides its existing shares into multiple shares to boost the liquidity. In the process, the market value of the total outstanding shares of a company remains the same but market value of a single share is reduced in proportion to the number of shares extracted out of a single share. There is also reverse stock split which are in fact opposite transactions, where a company divides instead of multiplies, the number of shares that stockholders own, raising the market price accordingly.

So, as the stock split means a revision in the stock price as on the split date together with shareholders getting more shares for every share held earlier. Here are the 3 stock splits that have been recommended and you need to take note of them.

Variman Global:

The company in its board meet held on May 3 informed of the "Splitting of the face value of the existing equity shares from Rs. 10/- per share to Re. 1 per share, subject to the approval of the share holders in the next general meeting. The company has decided on the stock split for easy access to investors and at the same time enhance liquidity in the stock. The stock of the company last traded at Rs 195 per share on the NSE.

This is a small cap IT solutions company providing solutions through software development, IT Infrastructure solutions and distributing IT Hardware to clients and partners through aggressive market development and continuous improvement. The company's peers are TCS, Infosys, HCL and the like.

Salasar Techno Engineering:

In its board meeting outcome on April 30, the engineering company notified the exchanges about the "alteration in the capital of the Company by sub-division/split of existing equity share of the Company from one equity share having face value of Rs. 10/- (Rupees Ten only) each, fully paid-up into Ten (10)
equity shares having face value of Rs. 1/- (Rupees One only) each fully paid-up, subject to the approval of shareholders of the Company.

The company is a provider of steel solutions in India. It provides customized steel fabrication and infrastructure solutions for telecommunication towers, transmission towers, substation structures and solar module mounting structures.

Tata Steel:

In its meet on May 3, 2022, the company recommended a 1:10 stock split i.e. for every share held the shareholders would be eligible to get 10 shares on the stock split. "The Board considered the proposal for sub-division of 1 equity share of the Company having face value of ₹10/- each into 10 (Ten) equity shares having face value of ₹1/- each, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the Company. Further, the Board recommended consequential amendments in the Capital Clause of the
Memorandum of Association of the Company and Articles of Association of the Company, subject to approval of the Shareholders of the Company."

Tata Steel is a Nifty 50 constituent and diversified steel producer, engaged in the business of steel making, including raw material and finishing operations.

Few points to note about the stock split

Though the number of shares increase in the stock by a specific multiple, the total value of the shares continue to be the same compared to the pre-split. This is because through a split there is no addition of any real value.

Market value of a single share is reduced in proportion to the number of shares extracted from a single share

Many a times people confuse stock split with bonus share issuance but there is a marked difference that in case of bonus share issuance by the company there is a change in the issued share capital while in the stock split the company's authorised share capital is splitted.

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