360 One Wam, formerly known as IIFL Wealth Management has fixed the record date for two corporate actions. This includes a 1:2 stock split and a 1:1 bonus issue. Its shares were trading at ₹ 1830.00 apiece at 12:20 PM on Friday.
360 One Wam on January 19, 2023, informed the exchanges that its board of directors had approved the sub-division of its equity shares of the face value of ₹2 into two equity shares of the face value of ₹ 1 each, fully paid up. This means that for every share that shareholders hold, they will receive two shares (1:2).
In addition to a split, it had announced that its board had approved the issue of one bonus equity share for every 1 (one) fully paid-up equity share of the face value of ₹ 1 each (1:1), after the adjustment due to the split.
The shareholders of the company approved these corporate actions at their extraordinary general meeting on February 15, 2023. Following the approval, the company has announced Thursday, March 02, 2023, as the record date for the purpose of ascertaining the eligibility of shareholders entitled to receipt of equity shares upon sub-division and bonus issue.
Corporate actions like bonus issues and stock splits improve the liquidity of stocks and make them more affordable for retail investors, thereby encouraging retail participation and increasing the company’s equity base. Companies resort to these corporate actions when they realise that the price of their shares is either too steep or beyond the price levels of peer companies.
360 One Wam is a mid-cap stock with a market capitalization of ₹ 16225 crores. It has an ideal return on equity of 19.84% and a good dividend yield of 3.51%. Its shares were trading at a price-to-earnings ratio of 24.71, which is slightly higher than the industry P/E of 21.01, indicating that the stock might be slightly overvalued as compared to its peers.
Written by Simran Bafna
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