RIR Power Electronics Ltd, a small-cap company listed on the BSE, has announced a significant benefit for its shareholders. The company has decided to implement a stock split in the ratio of 5:1. This means that one share will now be divided into five shares. The decision was made at a board meeting held on July 17, 2025.
The company has set the record date for the stock split as July 25, 2025. Investors holding the shares until July 25 will receive the newly split shares.
Information Disclosed to the Exchange
According to the information provided to the stock exchange by RIR Power Electronics, the company will split each equity share with a face value of ₹10 into five equity shares with a face value of ₹2 each. This decision is aimed at increasing the liquidity of the stock and attracting retail investors.
The company stated that the stock split will be effective from July 25. From that day onwards, the newly divided shares will be visible in investors' Demat accounts.
Active Trading in the Stock
Following the news of the stock split, RIR Power Electronics shares saw a slight surge on Thursday. The company's share closed at ₹1329 in the previous session and reached ₹1344 in intraday trading. However, it closed almost flat at the end of the day.
RIR Power Electronics Share Performance
This small-cap stock has delivered impressive returns over the past two years.
- In the last two years, the share has given a return of approximately 360 percent.
- The return over three years has reached 1222 percent.
- Looking at five years, the share has surged by up to 9431 percent.
However, a significant decline has also been observed since the beginning of this year. In March 2025, the stock had fallen to around ₹707, while its high in September of the previous year was ₹2439.
Company's Market Cap and Profile
According to data available on the BSE, RIR Power Electronics Ltd has a market capitalization of approximately ₹2044 crore. The company operates in the field of power control systems, industrial electronics, and power conversion. Its clients include major manufacturing companies.
What is a Stock Split?
A stock split is when a single share is divided into smaller parts. This directly impacts the share price, but there is no effect on the company's total value (market capitalization).
For example, if a company's share price is ₹1000 and it implements a stock split in the ratio of 5:1, then one share will be replaced by five shares, and each share will be priced at ₹200.
A stock split gives new investors the opportunity to buy shares at a lower price, leading to an increase in the buying and selling of the share.
Why is the Stock Declining?
Up to March 2025, the share had seen a decline of up to 55 percent. After a sharp rally in 2024, the decline is attributed to factors like profit-booking and market correction. However, its long-term performance remains b.
What are the Benefits for Shareholders?
Following this decision, each share held by shareholders will now be converted into five shares. However, this does not mean that the value of their holdings will increase, as the share price also decreases in the same ratio as the split.
For example, if someone owns 10 shares and each share is priced at ₹1000, then after the split, they will own 50 shares, which will be priced at approximately ₹200 each.
RIR Power Electronics' Focus
The company provides services related to industrial automation, smart power control, and power quality. Its products help improve power consumption, enhance the performance of industrial machines, and reduce power loss.
The company's target is to further strengthen its technological capabilities and customer network in the coming years.
Bullish Trend Expected Before the Record Date
Now that the company has announced the stock split record date as July 25, a slight bullish trend may be observed in the share before then. Investors typically show a tendency to buy shares before the record date, keeping the benefits of the split in mind.
