10:2 Sub-Division of Shares: October 18 Record Date For Stock Split; BUY/SELL?

The top producer of graphite electrodes in India at present is HEG Ltd, a prestigious brand of the LNJ Bhilwara group. It manufactures advanced UHP (Ultra High Power) electrodes in one of the largest integrated graphite electrode facilities in the world. With a market valuation of Rs 9,392.41 Cr, HEG's shares wrapped up 5.36% higher on the BSE on Wednesday at Rs 2433.55 a share, after the company's announcement of the record date for a 10:2 stock split.

HEG Stock Split

"In furtherance to our earlier intimation dated September 23, 2024 inter-alia with regard to approval of subdivision/split of existing equity shares of the Company by shareholders through postal ballot on September 20, 2024 and pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company has fixed Friday, October 18, 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division / split of existing Equity Shares of the Company, such that 1 (One) Equity Share of the Company of the face value of Rs. 10/- (Rupees Ten Only) each fully paid up be sub-divided/split into 5 (Five) Equity Shares of the Company of face value of Rs.2/- (Rupees Two Only) each fully paid up, ranking pari passu in all respect," said HEG in a stock exchange filing.

As per HEG, the rationale behind the 10:2 stock split is to enhance the liquidity of the company's equity shares and to encourage the participation of retail investors by making equity shares of the company more affordable and cheaper.

Closure of Trading Window of HEG

"Pursuant to the Code of Conduct for Regulating, Monitoring & Reporting Trading by Insiders of the Company under SEBI (Prohibition of Insider Trading) Regulations, 2015, we would like to inform you that the trading window for the purpose of trading in the shares of the Company by its Designated Person(s) (including their immediate relative(s)) and other connected person(s) of the Company shall remain closed from 1st October, 2024 till 48 (Forty Eight) hours (both days inclusive) after the announcement of Financial Results ("Trading Restriction Period") for the Quarter and half year ending 30th September, 2024," said HEG in a regulatory filing on 25th September, 2024.

HEG Share Price Target

"HEG stock price is overbought yet bullish on the Daily charts with next resistance at 2615. Investors should be booking profits at current levels as a Daily close below support of 2418 could lead to a target of 2100 in the near term," A R Ramachandran, Independent Research Analyst recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.