1:10 Split For First Time, Record Date - November 9; Gems & Jewellery Stock Up 185% YTD Ahead Of Sub-Division

Gems and jewellery company that has IPO status on exchanges, Motisons Jewellers touched a new 52-week high after the company announced its first-ever shares sub-division in the ratio of 1:10. Trading below Rs 300 levels, Motisons is a multi-bagger of 2024 with gains of over 185% so far, Motison has been bullish throughout the year till date.

After market hours of September 20, the Motisons share price ended at Rs 287.30 apiece, up by 3.7% on BSE with a market cap of Rs 2,828.35 crore. During the trading hours, the stock jumped to hit a new 52-week high of Rs 294 apiece.

Motisons' weekly gains are about 8.4%, while in a month, the stock zoomed by 52%. Year-to-date, the stock rallied by a whopping 186%.

Motisons Jewellers Stock Split:

The company has announced its first-ever stock split. The ratio is 1:10, meaning 1 existing share with Rs 10 face value will be sub-divided into ten small shares with Rs 1 face value.

The reason behind the stock split is to enhance the liquidity of the Company's Share to make it more affordable for small investors and also to broaden the company's investor base.

The company plans to complete the stock split action in 2 months. Accordingly, the company fixed November 09, 2024, as the record date to determine the eligibility of Shareholders for the purpose
of subdivision/split.

What Are The Advantages Of Stock Split?

As per the HDFC Securities blog, a stock split increases the number of outstanding shares, thus improving the liquidity of shares in the market. The low-priced shares come into the trading range of investors and so can be traded more, thus, enhancing liquidity.

Also, the brokerage explained that stock splits ease portfolio management for shareholders. It makes it easier to rebalance the portfolio with low-priced stocks that are easily tradable and more liquid.

If an investor is not a company shareholder, the announcement of a stock split gives him an opportunity to invest in the company's shares at a lower price than before, as per the brokerage.

There important dates as per HDFC Securities that the investors should not miss out on for being eligible. These are:

- Record Date: A Record date is a date on which the company identifies the registered shareholders eligible for a stock split. Only those investors who hold shares of a company in their Demat account on the record date are eligible for the stock split.

Ex-Split Date: An Ex-split date is when the stock begins trading at the new adjusted price after the split.

The new split shares or the subdivided shares are credited to the existing shareholders' accounts on the next trading day after the record date.