This stock is up 2,700% since its IPO. Here's why it might split in 2025
Subscribe to enjoy similar stories. Companies use various corporate actions, such as dividends, bonus shares, stock splits, and buybacks, to reward shareholders, distribute reserves, and improve market liquidity.
A stock split is a corporate action where a company divides its existing shares into multiple new shares, increasing the total number of shares outstanding while maintaining the overall value for shareholders. This does not alter the total value of an investor's holdings, as the share price decreases proportionally.
Read this | Dixon Technologies: A flurry of acquisitions, collaborations, and capacity expansions For instance, in a 2-for-1 stock split, each shareholder receives two shares for every one they own, but the price of each share is halved. Companies usually perform stock splits when their stock prices rise significantly, making them less accessible to smaller investors, or to boost liquidity and attract a broader investor base.
Stock splits often signal a company’s confidence in future growth, typically occurring after a substantial increase in share price. This article will explore a high-growth company, Dixon Technologies Ltd, which has delivered an astounding 2,700% return since its initial public offering (IPO) and might be a candidate for a stock split.
Incorporated in 1993, Dixon Technologies (India) Ltd is a leading electronic manufacturing services (EMS) company operating across various product verticals, including consumer electronics, lighting, home appliances, CCTV cameras, mobile phones, security surveillance equipment, wearables and audibles, AC-PCBs. The company also provides reverse logistics services and recently entered a joint venture with Imagine Marketing Private Ltd to design and
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