1:10 Stock Split: Oil Stock Turned Rs 10,000 To Rs 1.5 Lakh Corpus In 6 Months, Up 1,421%; Ex-Split Soon

An oil and gas stock, Dolphin Offshore Enterprises (India) has been hitting back-to-back upper circuits for many months now. And this week has been no different. On January 18, the stock touched a new 52-week high and locked at its upper circuit level. The stock is in focus ahead of its share split in the ratio of 1:10.

In January, the stock price touched a new 52-week high of Rs 1,691.30 apiece on NSE. This is also the stock's 2% upper circuit level, which means there were several buyers but no sellers on this day.

Data from NSE showed that the stock has been re-listed on several occasions. From its re-listing in August 2023, the stock has skyrocketed by four-digits in percentage terms.

On August 21, 2023, the stock had touched its 52-week low of Rs 109 apiece. That being said, in six months, the stock zoomed by a breathtaking 1,421.24% on NSE.

Let's suppose, an investor infused Rs 10,000 for Dolphin shares on August 21, 2023, their investment value is now Rs 1,52,124, a return of Rs 1,421,24 in six months.

As per the regulatory filing, Dolphin Offshore is set to trade ex-split next week. The company has fixed January 25, as the record date for its stock sub-division in the ratio of 1:10.

The ratio 1:10 means that 1 Dolphin Share having a face value of Rs 10 each will be subdivided into ten equity shares of Dolphin having a face value of Re 1 each.

Typically, listed companies declare a stock split of already owned shares into much smaller shares. This is done to improve liquidity by breaking the shares into smaller sizes. The face value of the shares reduces in proportion to the split ratio, however, there is no impact on the company's share capital and reserves. Although the price value of a stock reduces in a stock split, it the number of shares held rises in the investors' portfolio of that specific stock.

Dolphin is a leading provider of underwater services to the Indian oil and gas industry. Over the years, we have developed a diversified portfolio for undertaking turnkey projects involving sub-sea and marine services and as an EPC contractor.

However, NSE also revealed that the stock is currently under surveillance indicator of ESM - II (35).

Notably, Sebi and stock exchanges to enhance market integrity and safeguard the interest of investors, have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auctions and transfer of securities to Trade for Trade segment from time to time.

Accordingly, the regulators to enhance market integrity and safeguard the interest of investors, have been introducing various enhanced pre-emptive surveillance measures such as reduction in price band, periodic call auctions and transfer of securities to the Trade for Trade segment from time to time.

The main objective of ESM is to advise and alert investors to be extra cautious while dealing with these securities. Also, market participants are advised to carry out necessary due diligence while dealing in these securities.

Disclaimer: The information only highlights the stock and its stock split and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisors.