1:5 Split Record Date On January 13; Stockbroking & Allied Stock In Focus; How Portfolio Will Be Impacted?

Shardul Securities Ltd, a penny stock engaged in the business of stockbroking and allied, will be in focus on Monday, January 13, as the company will split for the first time in the ratio of 1:5. One Shardul Securities will be split to 5 smaller shares, becoming cheaper for new and existing customers. A stock split is carried out to improve liquidity!

Shardul Securities Share Price:

Last week, on Friday, Shardul Securities stock stood at Rs 423.25 apiece, at its lower circuit of 2%. The company's market cap was at Rs 740.62 crore. Before the stock split, the company's 52-week high and low is at Rs 556.85 and Rs 147.65 apiece.

Post-stock split, the current share price, 52-week highs and lows, VWAP, and limit circuits will be adjusted.

During the trading week from January 6 to 10, the stock price witnessed a bearish trend, falling by nearly 6% on the BSE. However, in the past six months, Shardul Securities has surged by 67%. In a year's performance, Shardul emerged as a multi-bagger with gains of a whopping 166.3%.

Shardul Securities Stock Split:

The company has fixed Monday, January 13, 2025, as the "Record Date" for determining entitlement of Equity Shareholders for sub-division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, will be sub-divided into 5 (five) equity shares having face value of Rs. 2/- (Rupees Two only) each, fully paid-up.

The stock split ratio is 1:5. This will be Shardul Securities' first-ever stock split.

Generally, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.

About Shardul Securities:

Shardul Securities Limited (Formerly known as Shriyam Securities & Finance Limited) is a Flagship Company of the Shriyam Group promoted by a young team of Chartered Accountants with immense experience in the Finance Industry. The Company was promoted with the view to catering to the financial requirements of the manufacturing and servicing industry by way of lease finance.

What are the short-term and long-term effects of the stock split?

As per brokerage Lemonn, the effects of a stock split can be analyzed in both the short-term and long-term. In the short term, a stock split may lead to increased trading volume and heightened investor interest, which can result in a temporary increase in the stock price.

In general terms, the brokerage further explained that the long-term effects of a stock split depend on various factors, including the company's fundamentals, market conditions, and investor sentiment. While a stock split may generate renewed investor interest and potentially result in a higher stock price in the long run, it is important to consider the overall prospects and growth potential of the company before making long-term investment decisions.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.