Stock Splits 2024: 2 PSUs Among 4 Stocks That Will Split Soon, Shares To Get Cheaper

4 companies recently declared their decisions to split their stocks to make them affordable and attractive. These companies are KSB, Bharat Dynamics, Canara Bank, and Davangere Sugar Company. Canara Bank and Bharat Dynamics are public sector undertaking and their stocks will split in May only. Meanwhile, KSB Ltd and Davangere Sugar Company have yet to declare the record date for their stock split. All the four stocks offered highly attractive returns to their shareholders. More details given below:

1. KSB Declares 1:5 Stock Split: As per the regulatory filing of the company issued on April 26, "Approval of sub-division/split of 1 (One) equity share of the Company having nominal/face value of INR 10 each (Rupees Ten only), into 5 (Five) equity shares of INR 2 each (Rupee Two only), subject to approval of the Members of the Company and any other regulatory authorities, if any; and further approved consequential alteration of the Capital Clause i.e., Clause V of the Memorandum of Association of the Company, subject to the approval of the Members of the Company. (Annexure-1)."

It is worth noting that Bajaj Allianz Life Insurance Company Ltd has 2.44% stake in KSB as it holds 848,237 shares of the company. FII/FPI have increased holdings from 4.50% to 5.22% in March 2024 quarter. The 52-week high price of KSB Ltd shares is quoted at Rs 5,185.00 per share (as on 26/04/2024) and 52-week low price is quoted at Rs 2014.65 per share (as on 13/07/2023), respectively. Last trading price of KSB Ltd share on BSE is Rs 4658.90 per share. KSB announced its highest dividend in 2024 after 23 years at 17.5/share in 2024.

KSB Shares offered 55% return in last 6-months and gained 110% in last 1-year.

2. Bharat Dynamics Approves 1:2 Stock Split: Defence public sector undertaking (PSU) Bharat Dynamics already fixed May 24, 2024 as the record date for 1:2 stock split. Current market price of Bharat Dynamics Ltd share on BSE is Rs 1959.50 apiece. Bharat Dynamics share offered attractive returns of 89% in last 6-months, soared 174% in last 2-years and surged massively by 605% in last 5-years. Life Insurance Corporation Of India (LIC) has 1.43% stake in Bharat Dynamics with 2,626,403 shares. Bharat Dynamics has a PE of 75.34 and ROE of 14.13.

3. Canara Bank Share To Split On May 15: Leading public sector bank Canara Bank is scheduled to hold meeting Board of Directors on May 8, 2024 to consider, approve financial results and recommend dividend for the financial year 2023-24, if any. Canara Bank has already recommended 1:5 stock split and fixed May 15 as the record date for sub-division of shares.

Last trading price of Canara Bank share on BSE is Rs 625.40 per share. The 52-week high price of Canara Bank share on BSE is Rs 632.65 per share (as on 3/04/2024) and 52-week low price is Rs 291.30 per share (as on 19/05/2023), respectively. The PE of Canara Bank is 8.12 and ROE is 17.31. Canara Bank shares surged 96% in last 1 year, rose 350% in last 3-years, and soared 134% in last 5-years. It is worth mentioning that Canara Bank declared highest dividend of Rs 12/share in last 10-years in 2023 and its ex-dividend date was June 14, 2023. Before that, Canara Bank recommended Rs 13/share dividend in 2013.

4. Davangere Sugar Company Approves 1:10 Stock Split: Last trading price of Davangere Sugar Company share on BSE is Rs 93.54 per share on BSE. The 52-week high price is Rs 120.00 per share (as on 01/09/2023) and 52-week low price is Rs 49.16 per share (as on 11/05/2023), respectively. Davangere Sugar Company share gave return of 15% in last 1-month and zoomed 547% in last 2-years.

As per the BSE filing of the company dated April 19, "The Board of Die€Ion of the Company at its Board meeting held today has accorded its approval to sub-divide/split the Equity Shares ofthe Company such that 1 (One) Equity Share having nominal face value of Rs. l0/- (Rupees Ten only) each be sub-divided into 10 (Ten) Equity Shares having nominal/face value of Rs. 1/- (Rupees One Only) each subject to approval of the shareholders of the Company or any other regulatory authority, if any. Approved consequential alteration of the Capital Clause i.e., Clause V of the Memorandum of Association of the Company, subject to the approval of the shareholders of the Company."

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