IT Sector Multibagger Stock Announces Stock Split: Check Details

Shares of Dev Information is an IT company of a small cap category. The company alongside its results announcement has also announced the stock split.

About the company

Dev Information: The company founder in 1997 was originally engaged in to business automation software development. Currently, Dev Information Technology Limited (NSE: DEVIT, BSE: 543462) works together with its clients across the globe to empower their business with the right mix of information technology, innovation and digital transformation.

Stock price trajectory:

The company's all time low price is Rs. 22.55, while its all time high has been Rs. 226.9. The stock's 52-week low has been Rs. 42.75 and currently it trades at a price of Rs. 165.4. The stock is a multibagger of 2022 with YTD return of 124% and 1-year return at 197%.

Financials

The company in the just ended March quarter has turned profitable as against net loss of Rs. 0.01 crore in the same quarter a year ago. The net profit in the March quarter is at Rs. 0.76 crore.

Stock split:

In the BSE filing, the company mentions that board has approved, "Considered and approved for sub-division/split of existing equity share of the Company from 1 (one) equity share having face value of Rs. 10/- (Rupees Ten only) each fully paid-up into 2 (Two) equity shares having face value of Rs. 5/- (Rupees Five only) each fully paid-up, subjectto regulatory/statutory approvals as may be required and the approval of the shareholders of the Company. The notice and date, time and venue of General meeting for the approval of shareholders for such resolution shall be decided by the Board in the ensuing meeting and will be intimated to the exchanges in due course of time. The record date for the sub-division of equity shares shall be decided by the Board and will be intimated to the exchanges in due course.
A company engages in stock split decision to make its stock more affordable if its price levels are high for retail investors, which will lead to increase in liquidity in the capital market, to widen shareholder base and to make the shares more affordable to small investors.

Stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.

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