Companies announce corporate actions like stock splits to enhance the liquidity of their shares. When a company declares a stock split, the number of shares of the company increases, but the face value of its shares decreases. Meanwhile, the market capitalization remains the same, but the market price per share gets adjusted.
The record date and ex-date are two important dates that investors must keep in mind to know if they are eligible for a stock split. The ex-date is the day on which a stock trades without the benefit of the split. Since all securities have been moved to the T+1 settlement cycle, the ex-date and record date lie on the same day.
To be eligible to receive the benefit of a corporate action, like a stock split, investors must buy the shares of a company on or one day before the ex-date. For example, if a stock will trade ex-split on March 16, 2023, shareholders will have to buy it on or before March 15, 2023, to be eligible for the split.
Investors should keep in mind that doing a thorough analysis of a company is important before investing in it. Do not buy the shares of a company just because of an upcoming corporate action. Here are five stocks that will trade ex-split this week:
Medico Remedies Ltd
Medico Remedies manufactures allopathic pharmaceutical preparations. Its shares were trading at ₹ 384.00 levels on Tuesday and have a face value of ₹ 10. The company’s shares will split on March 16, 2023, from ₹ 10 to ₹ 2. Medico Remedies has a market capitalization of ₹ 613 crores.
Shree Securities Ltd
Shree Securities is in the business of investing and financing. Its shares were trading at ₹ 13.25 levels on Tuesday and have a face value of ₹ 10. The company’s shares will split on March 16, 2023, from ₹ 10 to ₹ 1. Shree Securities has a market capitalization of ₹ 105 crores and is a penny stock.
Hi-Tech Pipes Ltd
Hi-Tech Pipes is in the business of manufacturing ERW steel round & section pipes, cold rolled strips & engineering products and distribution of the same across India. Its shares were trading at ₹ 871 levels on Tuesday and have a face value of ₹ 10. The company’s shares will split on March 17, 2023, from ₹ 10 to ₹ 1. Hi-Tech Pipes is a small-cap stock with a market capitalization of ₹ 1,139 crores.
RO Jewels Ltd
RO Jewels is engaged in the business of procurement and sale of gold and silver chains, in addition to other jewels, mainly in Ahmedabad and Mumbai. Its shares were trading at ₹ 31 levels on Tuesday and have a face value of ₹ 10. The company’s shares will split on March 18, 2023, from ₹ 10 to ₹ 2. RO Jewels is a penny stock with a market capitalization of ₹ 30 crores.
Vivanta Industries Ltd
Vivanta Industries is involved in the trading of various steel products and electronic items. Moreover, it deals in shares & securities. Its shares were trading at ₹ 23 levels on Tuesday and have a face value of ₹ 10. The company’s shares will split on March 18, 2023, from ₹ 10 to ₹ 2. Vivanta Industries is a penny stock with a market capitalization of ₹ 23 crores.
Note: Penny stocks are highly risky stocks. Please consult your investment advisor before making an investment.
Written by Simran Bafna
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