A company generally decides to split its shares mainly because of two reasons. The first is to improve the trading liquidity in the market and the second reason is to make the stock seem more affordable to investors. The number of shares outstanding increases and the price per share decreases, keeping the total market capitalization of the stocks constant.
Here are 2 multi-bagger stocks that will trade ex-split on Friday:
S & T Corp Ltd
The shares of S & T Corp fell 5% and got locked in the lower circuit at Rs 293.65 per share during the first half of trading on Wednesday. In the span of a month, the stock has shed approximately 34.5 per cent. However, on a long-term basis, the stock has risen from Rs 22.85 to the current levels logging a multi-bagger return of 1,185 per cent within a year.
S & T Corporation Ltd has diversified business with interests in Construction and textiles. The company has been doing various projects in joint ventures and partnerships at Chembur, Malad & Goregaon.
The board of the company has approved a stock split. The company will subdivide one equity share with a face value of Rs 10 each into 5 equity shares with a new face value of Rs 2 each. The record date for the purpose has been set as December 16th, 2022.
The company has a market capitalization of Rs 199 crore. The promoters of the company hold a 67.65 per cent stake with zero shares pledged.
Lancer Container Lines Limited
The shares of Lancer Container Lines Limited were trading marginally lower during Wednesday’s early half at Rs 437 levels. However, in the past six months, the stock price has risen from Rs 194 in June to the current levels logging a multi-bagger return of 125 per cent.
Lancer Container Lines Ltd is one of the leading integrated shipping and logistics solution providers in India. The company is engaged in providing customized shipping solutions to a wide range of customers across India, the Indian subcontinent, South East Asia, the Far East, the MENA region, and CIS countries.
The board of the company has approved a stock split. The company will subdivide one equity share with a face value of Rs 10 each into 2 equity shares with a new face value of Rs 5 each. The record date for the purpose has been set as December 16th, 2022.
The small-cap company has a market capitalization of Rs 1,343 crore. The promoters of the company hold a 55.06 stake with zero shares pledged. Foreign Institutional Investors (FIIs) hold a 20.46 per cent stake in the company.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
