Last Updated on Feb 8, 2022 by Aradhana Gotur
Listed firms may opt to announce sub-division of shares or share splits from time to time to increase liquidity in stock by attracting small size investors. This month, four publicly traded firms: Schaeffler India, Shree Ganesh Biotech, Bhatia Communications and Retail, and JBM Auto, will divide their shares. It will not affect its fundamentals, but the share price will fall, allowing small-ticket buyers to acquire and sell these equities.
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The management of the ball and roller bearing manufacturing firm has informed the Indian exchanges of the stock split decision, and the record date for the large-cap stock split has been set for 9 February 2022.
Schaeffler India announced the share split in its most recent exchange announcement, noting, “The Members of the Company through postal ballot have approved Sub-division of Equity Shares of the Company from One (1) Equity Share having face value of Rs. 10 each (Rupees Ten Only) into Five (5) Equity Shares having face value of Rs. 2 each (Rupees Two Only) fully paid up.”
Shree Ganesh Biotech
This small-cap stock will be split in half at a ratio of 1:10, and the company’s management has informed the Indian exchange of its board of directors’ final decision on the stock split. The record date for the stock split has been set for 11 February 2022. The corporation has also issued a share incentive. The firm has told the exchange that its board of directors will meet on 7 March 2022 to discuss the declaration of the issuing of bonus shares to the company’s equity shareholders.
Meanwhile, the company’s board of directors has authorised the stock split decision and has informed the exchange, claiming, “In terms of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, our earlier letter dated 29 December 2021 we have informed that the Company has fixed Friday, 11 February 2022 as the “Record Date”, for the purpose of sub-division of company’s 1 (one) equity shares of the face value of Rs. 10 each into 10(ten) equity shares of the face value of Re. 1 each, subject to the approval of shareholders, which is obtained through Postal Ballot (including e-voting) in accordance with the applicable laws and regulations.”
Bhatia Communications and Retail
This is another small-cap firm whose stock split decision has been accepted by its board of directors. According to the company’s exchange announcement, they have chosen to split their shares in half at a ratio of 1:10, with a record date of 16 February 2022.
The approval of a stock split was announced by Bhatia Communications and Retail, claiming, “Pursuant to Regulation 42 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we write to inform you that the board of directors of the Company has fixed Wednesday, 16 February 2022 as the Record Date for determining the eligibility of Shareholders with regard to the sub-division of each equity share of the face value of Rs. 10 (Rupees Ten) each into 10 (ten) equity shares of the face value of Re. 1 (Rupee One) each as approved by the shareholders in the Extra Ordinary General Meeting held on 22 January 2022.”
The board of directors of this auto firm has approved the stock split plan and has told the Indian exchange that its share of Rs. 5 per equity share would be divided into Rs. 2 per equity share, with the stock split taking effect on 22 February 2022.
JBM Auto states in its exchange communication, “Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company has fixed Tuesday, 22 February 2022 as the “Record date” for determining the eligibility of members for the purpose of sub-division of the equity shares of the Company from Face Value of Rs. 5 each fully paid-up to Face Value of Rs. 2 each fully paid-up.”
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