Small cap companies Likhitha Infrastructure Ltd and Mefcom Capital Markets Ltd have fixed Friday, December 02, as the record date for the purpose of determining the eligibility of shareholders for the purpose of sub-division/split, as per the companies' exchange filings.
In case of a stock split, the company reduces the face value of each share by a predetermined ratio and issues more shares to its existing shareholders.
Generally, a company opts for stock split or subdivision of shares when it is concerned that the price of its shares is too high, and wishes to make the shares more affordable. Hence, without increasing their market capitalisation, companies can attract new investors by splitting their shares.
For instance, if the ratio is 1:5, then the shareholder will receive 5 shares for every share they own.
In the case of Mefcom Capital Markets, the company will determine the eligibility of shareholders for the purpose of sub-division/split of each existing equity share of face value of 10 rupees into five equity shares of face value of 2 rupees fully paid-up on the record date.
Mefcom Capital Markets, is engaged in capital market operations, and merchant banking activities. The company had last split the face value of its shares from 10 rupees to 2 rupees in 2016.
Likhitha Infrastructure will ascertain the eligibility of shareholders entitled for corporate action of split/sub-division of one equity share having face value of 10 rupees each into two equity shares having face value of 5 rupees each.
The company is focused on laying pipeline networks along with the construction of associated facilities and providing O&M services for City Gas Distribution projects in India.
The company had last split the face value of its shares from 10 rupees to 5 rupees in 2016. As per trendlyne data, the share has been quoting on an ex-split basis from December 2.