Every corporate action holds some relevance for shareholders and investors. Likewise, stock split is one such action through which the company divides its stock's face value so as to increase the number of outstanding shares to increase liquidity in them.
To understand the same by an example, supposing a company X issues 1,00,000 shares of face value of Rs. 10/ share and then split its shares in the ratio of 2:1. So, essentially in the process, each of the share is split into 2. So, the number of shares will be 2 lakh and hence the FV will go down to Rs. 5.
So, here are the stock to see stock split in January:
1. Eldeco Housing:
The construction and contracting company in its filing on December 20, 2021 said the board has fixed January 18 as the record date for determining the eligibility of the shareholders with regards to the sub-division of 1 (One) Equity Share of the Company having face value of Rs.10/- (Rupees Ten) each fully paid-up into 5 (Five) Equity Shares having face value of Rs. 2/- (Rupees Two) each fully paid-up as approved by the shareholders of the Company through Postal Ballot on Thursday, December 16, 2021.
In a stock split, 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 no of shares extracted out of a single share.
The company caters to nearly all segments of real estate such as residential townships, multi-storey group housing, malls, SEZs, offices, hotels etc. Further besides its key regions, the company is looking to expand in east and central India. The company's stock last traded at Rs. 4689.
2. Indo Amines:
The chemicals company has informed on December 28, 2021 that the split record date is January 15 for the sub division of shares of face value of Rs. 10 each fully paid which will be subdivided into Equity Shares of face value of Rs. 5/- each fully paid up. The share will be quoting on an ex-split basis from January 15, 2022.
Indo Amines is the country's largest independent manufacturer of fine, specialty, and performance chemicals.
3. IPCA Labs:
For the pharma company, the company on December 24 said that the board in its meeting held today has fixed Tuesday, 11th January, 2022, as the 'Record Date' for the Members entitlement of sub-divided shares. Each fully paid-up equity share of Rs.2/- each of the Company is being sub-divided into 2 fully paid-up equity shares of Re. 1/- each, pursuant to the Resolution passed by the members of the Company at the Extra-Ordinary General Meeting held on 16th December, 2021.
The company's stock trades ex-split from today with prices seeing a decline by close to 3 percent and quoted at Rs. 1069.55 per share.
The company is a fully-integrated pharma major that is into manufacturing more than 350 formulations and 80 APIs for various therapeutic segments.
Likewise there are some counters or mutual fund ETFs which saw a split of its shares in this January month itself.
|Stock||Old FV||New FV||Record date|
|Eldeco Housing||Rs. 10||Rs. 2||January 18|
|Indo Amines||Rs. 10||Rs. 5||January 15|
|IPCA Labs||Rs. 2||Rs. 1||January 11|
|SBI Gold ETF||Rs. 100||Rs. 1||January 6|
|Johnson Pharmacare||Rs. 10||Rs. 1||January 5|
Benefit of stock split for shareholders:
Through the stock split, the stock becomes more accessible as sometimes a higher price can dampen investor spirit. There is indeed a general preference to buy a higher number of shares at low cost. Also, after the stock split, there is enhanced liquidity in the stock with enhanced buying and selling.
When are the additional shares after stock split credited into the shareholder's account?
The additional stocks extracted after a stock split are usually credited within 4-5 days from the record date. You need to check your demat holding post the record date to ensure there is appropriate credit into your demat account in respect of your holding against the scrip going for a stock split.