Upcoming Stock Split for Textile Company: Face Value of Shares to Drop from ₹10, with Current Trading Below ₹100
Stock Split Priced Below ₹100: A textile firm has revealed plans to split the face value of its equity shares. Currently, each share has a face value of ₹10, and the company’s stock is trading below ₹100. The record date for the split has already been established.
In a recent filing with the exchange, the company’s board announced a 10:1 stock split ratio. This means that the company will divide one share with a face value of ₹10 into ten shares. After the split, each share will have a reduced face value of ₹1.
Nandan Denim Limited has announced a stock split, marking a significant update for its shareholders. In a recent filing with the exchange on September 7, the company confirmed the record date for the split. The announcement set the record date for Thursday, September 19, 2024. This date will determine which shareholders are eligible for the upcoming split.
At the 30th Annual General Meeting on September 6, 2024, the company’s equity shareholders approved the decision to split the shares. The plan will reduce the face value of each equity share from ₹10 to ₹1. The split will ensure that the newly issued shares will hold the same ranking and value as the existing ones in every respect.
What Is Stock Split?
A stock split, or subdivision, serves as a common corporate action to boost trading liquidity and make shares more affordable. When a company announces a stock split, it adjusts the share price according to the split ratio, effectively lowering the price per share. This adjustment results in an increase in the number of outstanding shares in the market.
Despite the increase in the number of shares, the company’s market capitalization and overall value remain unchanged. Furthermore, a stock split does not affect the total investment value for shareholders; rather, it simply adjusts both the price and the quantity of shares.
Nandan Denim Share Price
Nandan Denim, a textile firm specializing in the production and sale of fabrics such as denim, yarn, and shirting, saw its shares surge nearly 15 percent to close at ₹59.25 on the BSE this Friday.
According to BSE analytics, the microcap company’s shares have gained 69 percent over the past six months. Year-to-date, the stock has more than doubled investors’ money with a remarkable 110 percent increase. Over the last year, the stock has experienced an impressive 152 percent rise.
With a market capitalization of ₹854.07 crore, Nandan Denim has significantly boosted its investors’ wealth, delivering a 500 percent return over the past five years.
