Multibagger SME stock split record date on Monday. Last day to buy for eligibility
Bondada Engineering, which listed on the BSE SME in August 2023, will start trading ex-split from the upcoming Monday. The company had announced a stock split earlier in July, in a ratio of 1:5, and set September 2 as the record date for this purpose.
This means that today is the last day to buy shares of the company to be eligible for the stock split.
“We would like to inform you that the board of directors of the Company (“Board”) at its meeting held today i.e., Monday, July 15, 2024, has inter-alia considered and approved the following matters: Considered and approved the sub-division/split of existing 1 (One) equity share of the Company having a face value of Rs. 10/- (Rupees Ten only) each, fully paid-up, into 5 (Five) equity shares having a face value of Rs. 2/- (Rupees Two only) each, fully paid-up, subject to shareholder’s approval,” said the company in a previous filing to the exchanges.
This is the first instance of Bondada Engineering splitting its shares, according to data from Trendlyne.
A 1:5 stock split means that for every one share an investor holds, they will receive four additional shares, resulting in a total of five shares. The value of each share is proportionally reduced, so the overall value of the investment remains unchanged.
In this case, each share with a face value of Rs 10 will be split into five shares with a face value of Rs 2 each.
This type of split increases the number of shares outstanding and makes the stock more affordable to a broader range of investors.
Bondada
