This week, IOL Chemicals, Mehai Technology, Shalimar Agencies, and Shangar Decor will undergo stock splits. This will make the shares more affordable, increase liquidity, and facilitate easier purchasing for small investors.
Stock Market: Four companies are scheduled to split their shares this week. This will make their shares more affordable and easier for small investors to invest in. Stock splits increase market liquidity, accelerating trading activities and providing investors with more opportunities.
IOL Chemicals and Pharmaceuticals Stock Split
IOL Chemicals and Pharmaceuticals has decided to reduce its share price from ₹10 to ₹2 per share. The company has set March 11, 2025, as the record date. This means that investors holding the company's shares by this date will receive additional shares according to the split ratio.
Mehai Technology to Also Undergo Stock Split
Mehai Technology has announced a stock split. The company's shares will be reduced from ₹10 to ₹1 per share. The ex-date for this stock split is March 13, and the record date is March 14, 2025.
Shalimar Agencies Shares to Also be Split
Shalimar Agencies is also included in this list. The company has decided to reduce its share price from ₹10 to ₹1 per share. The ex-date for this split is March 13, and the record date is March 14, 2025.
Shangar Decor Shares to Become Cheaper
Shangar Decor is going to reduce its stock price from ₹5 to ₹1 per share. The company has set March 13 as the ex-date and March 14, 2025, as the record date.
Why are Stock Splits Conducted?
A stock split means a company divides its existing shares into smaller units, reducing their price, but the total value of the investor's shares remains the same. For example, if a company performs a 1:5 stock split and a share previously cost ₹100, it will now be divided into five parts, and each share will cost ₹20. However, the total value of the investor's shares will remain ₹100.
Benefits of Stock Splits for Investors
Opportunities for Small Investors – When a company's shares become very expensive, it becomes difficult for small investors to buy them. Stock splits make shares more affordable, making them easier to purchase.
Increased Market Liquidity – Stock splits attract more investors, increasing demand for shares and accelerating trading activities in the market.
Increased Demand for Company Shares – After a stock split, companies may see increased investment in their shares, potentially improving their market value.
