Zydus Wellness Ltd. and Kesar Enterprises Ltd. will be in focus on Wednesday, as it marks the last session for investors to buy shares to qualify before the stock goes ex/record-date.
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly. While the number of shares increases, the total investment value remains unchanged.
To be eligible for a stock split, investors must hold shares as of the record date announced by the company. The record date determines who will receive additional shares post-split, based on the split ratio.
With India following the T+1 settlement cycle, investors need to purchase the stock at least one trading day before the record date to be eligible. Buying shares on the record date itself won’t qualify, as the ownership won’t be reflected in time.
When a stock undergoes a split, it may take up to two working days from the ex-date/record date for the new shares to be credited to the demat account.
The share price is adjusted downwards proportionally to the split ratio. For example, if a stock is trading at Rs 1,000 and it executes a 2-for-1 split, the new share price will be Rs 500.
Zydus Wellness Stock Split
Zydus Wellness board has announced a stock split in the 1:5 ratio. That means one equity share having a face value of Rs 10 will be split into five equity shares with a face value of Rs 2.
The authorised share capital will remain at Rs 100 crore.
Kesar Enterprises Stock Split
Kesar Enterprises board has announced a stock split in the 1:10 ratio. That means one equity share having a face value of Rs 10 will be split into 10 equity shares with a face value of Rs 1.
. Read more on Markets by NDTV Profit.Zydus Wellness board has announced a stock split in the 1:5 ratio. Read MoreMarkets, Business NDTV Profit
