1st Ever Sub-Division of NBFC Stock: 15th October Record Date For 1:5 Stock Split; Buy?

With a market valuation of Rs 150.27 Cr, Credent Global Finance is a small-cap NBFC firm. Financial services provider Credent Global Finance Ltd. is situated in India. For the first time since the company's founding, a 1:5 stock split has been announced, and the record date has been set by the firm for this reason. Credent Global Finance's shares closed at Rs 146 on the BSE on Friday, 1.52% down.

Credent Global Finance Stock Split Record Date

"Pursuant to Regulation 42 of the Listing Regulations and relevant provisions of the Companies Act, 2013 and Rules made thereunder, the Company has fixed Tuesday, 15th October, 2024 as the Record Date, for the purpose of ascertaining the eligibility of the shareholders entitled for the following matter, in accordance with the approval of shareholders obtained on Monday, 30th September, 2024 at the 34th Annual General Meeting of the company: 1. Sub-division of 1 (one) Equity share of face value of Rs. 10/- each fully paid-up to 5 (Five) Equity shares of face value of Rs. 2/- each fully paid-up," said the company in a stock exchange filing.

Rationale Behind Stock Split of Credent Global Finance

"Equity Shares of the Company are listed and traded on BSE Limited. In order to improve the liquidity of the Company's Share and to make it more affordable for small investors and retail investors as also to broaden the small investors base, the Board of Directors of the Company, at its Meeting held on September 06th, 2024 has recommended to sub-divide/split the face value of each Equity Share having value of Rs. 10/- (Rupees Ten Only) each into 5 (Five) Equity Shares of face value of Rs. 2/- (Rupees Two Only) each fully paid up, subject to approval of the Members. The Articles of Association of the Company permits sub-division of Shares subject to approval of Members," said Credent Global Finance in a regulatory filing.

Allotment of Sub-Division of Shares of Credent Global Finance

"Upon approval of the Shareholders for sub-division of Equity Shares, in case the Equity Shares are held in physical form, the old Share Certificate(s) of the face value of Rs. 10/- each will stand automatically cancelled on the record date and new certificate(s) of the face value of Rs. 2/- each fully paid up, will be dispatched to the Shareholders without necessity of surrendering the old Share Certificate(s) of the face value of Rs. 10/- each. In case the Equity Shares are held in dematerialized form, the sub-divided Equity Shares will be directly credited to the Shareholder's Demat account on the record date in lieu of their existing Equity Shares," Credent Global Finance informed stock exchanges.

Credent Global Finance Share Price Target

"Credent Global Finance stock price is bearish on the Daily charts with strong resistance at 160. A Daily close below support of 138 could lead to a target of 111 in the near term," said A R Ramachandran, Independent Research Analyst.

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