A stock split happens when a company divides its current shares into more shares. This makes reducing the price per share, but the total value of the company stays the same. The companies announce splits to make shares more affordable, boosting accessibility for retail investors and often signaling confidence in future growth.
For investors, stock splits can enhance trading liquidity and attract more buyers. This can lead to more people buying the stock, which might increase the price in the short term. However, the value of your investment doesn’t change after a stock split. It’s still important to look at the company’s overall health and future prospects before deciding to invest.
Here are the two companies to watch this month that have announced stock splits:
Navkar Urbanstructure Limited
With a market capitalization of Rs. 327.09 crore, the shares of Navkar Urbanstructure Limited were currently trading at Rs. 5.83 per equity share, down nearly 2.67 percent from its previous day’s close price of Rs. 5.99.
The company has announced a stock split in the ratio of 1:2. This means that every single share with a face value of Rs. 2 will be split into two shares, each with a face value of Re. 1. The total value of investment remains the same, but shareholders will hold more shares. The record date is May 9, 2024.
Navkar Urbanstructure Limited was established in 1992 and specializes in constructing and developing various infrastructure projects, including sewage treatment plants, pumping stations, and sewage and drinking water transmission pipelines.
Navkar Urbanstructure Limited’s revenue has increased from Rs. 5.81 crore in Q3 FY24 to Rs. 8.61 crore in Q3 FY25, which has grown by 48.19 percent. The net profit has also grown by 7.06 percent from Rs. 0.85 crore in Q3 FY24 to Rs. 0.91 crore in Q3 FY25.
Also read: Zomato shares recover 9% from intraday low despite 78% profit decline; Check what brokerages say
Colab Platforms Limited
With a market capitalization of Rs. 1,436.67 crores, the shares of Colab Platforms Limited hit a 2 percent upper circuit of Rs. 140.85 per share on Friday, up from its previous closing price of Rs. 138.10 per share.
The company has announced a stock split in a 1:2 ratio. This means that every single share with a face value of Rs. 2 will be divided into two shares of Re. 1 each. The record date for this stock split is May 21, 2024.
Colab Platforms Limited is engaged in providing digital collaboration and communication solutions, offering software platforms and tools that enhance productivity, connectivity, and workflow efficiency for businesses and organizations across various industries.
Colab Platforms Limited’s revenue has increased from Rs. 1.12 crore in Q3 FY24 to Rs. 23.24 crore in Q3 FY25, which has grown by 1,975 percent. The net profit has also grown by 4.55 percent from Rs. 0.88 crore in Q3 FY24 to Rs. 0.92 crore in Q3 FY25.
Written By – Nikhil Naik
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