Five small cap companies, Medico Remedies Ltd, Shree Securities Ltd, Hi-Tech Pipes Ltd, Vivanta Industries Ltd, and Ro Jewels Ltd, have set record dates this week for the purpose of determining eligibility of shareholders for sub-division/split of face value of equity shares.
A stock split occurs when a company issues extra shares to its existing shareholders while reducing the face value of each share by a predetermined ratio. For instance, if the ratio is 1:5, then the shareholders will receive 5 shares for every share they own.
Medico Remedies Ltd, which is engaged in the manufacturing of medicines including diuretics, antimalarials, NSAIDS tablets, antireterovirals, anti-ulcer drugs, and antacids tablets, has fixed Thursday, March 16 as the record date, to decide on the eligibility of shareholders entitled for sub-division of 1 equity share of face value of ₹10 each fully paid-up to 5 equity shares of ₹2 each.
The ex-split date for the stock is similar to its record date.
Shree Securities Ltd, which is engaged in non-banking financial company (NBFC) activity and making both long term and short-term investment in quoted, as well as unquoted shares, has fixed Thursday, March 16 as the record date , to decide on the eligibility of shareholders entitled for sub-division in face value of equity shares of ₹10 to Re 1 each.
The ex-split date for the stock is similar to its record date.
Hi-Tech Pipes Ltd, which is engaged in manufacturing of electric resistance welded (ERW) steel round, section pipes, cold rolled strips and engineering products, has fixed Friday, March 17 as the record date, to decide on the eligibility of shareholders entitled for sub-division.
According to company's exchange filing, the names of shareholders entitled for sub-division of each of the equity share of the company have a face value of ₹10 each sub-divided into 10 equity shares have a face value of Re 1 each.
The ex-split date for the stock is Thursday, March 16, according to equitymaster.com
Vivanta Industries Ltd, which is focused on commercialising projects and providing consultancy and turn-key projects to pharmaceuticals, agro projects and prefabricated factories, has fixed Saturday, March 18 as the record date, to decide on the eligibility of shareholders entitled for sub-division.
“The purpose of subdivision of one equity share have face value of ₹10 each into ten equity shares of nominal value of Re 1 each,” said the company in an exchange filing.
The ex-split date for the stock is Friday, March 17, according to trendlyne.com
Ro Jewels Ltd, which is engaged in the wholesale business of gold and silver chains, has fixed Saturday, March 18 as the record date, to decide the eligibility of members for the purpose of sub-division of the equity shares of the company from face value of ₹10 each to face value of ₹2 each.
The ex-split date for the stock is Thursday, March 16, according to equitymaster.com.
Bonus
Astral Ltd, which is engaged in manufacturing of plumbing and drainage systems, has fixed Tuesday, March 14, as the record date for the purpose of ascertaining the eligibility of shareholders entitled for bonus in the ratio 1:3, i.e. one equity shares of Re 1 each for every three existing equity shares of Re 1 each.
The company's ex-bonus is the same as the record date.
Bonus shares are additional shares that a company grants to its existing shareholders. The basic tenet of bonus shares is that they increase the number of shares issued while maintaining a fixed ratio of shares held to shares outstanding.
So, 1:1 ratio means a shareholder will receive one share for every share she/he currently owns under a 1:1 bonus. For instance, if a person has 10 shares, she/he will receive 10 more. These shares are not purchased by the stockholders at any cost.
