JBM Auto shares rise 5% to hit upper circuit levels on BSE 522 each in Monday’s trading session. Multibagger stock started trading ex-split before its record date i.e. 22nd February 2022 for sub-division of its shares. stock split In the ratio 5:2.
“We wish to inform you that the Company has fixed Tuesday, the 22nd February, 2022 as the “record date” for determining the eligibility of members for the purpose of sub-division of the equity shares of the Company by the face value of Rs. 5/- each fully paid up to a face value of Rs. 2/- each fully paid up,” the company had said in an exchange filing.
on the sub-division of the face value of each share from from 5/- 2/-, all shares arising out of sub-division of equity shares shall be consolidated into whole equity shares and shall be settled at market value and net income (less expenses, if any) shall be distributed proportionately, as As far as possible, for the members concerned, JBM Auto said.
In December 2021, the company had informed that its board had approved the proposal for sub-division of equity share or stock split of each equity share having face value. In equity shares of face value of 5 2 each.
A stock split increases the number of shares outstanding by issuing more shares to existing shareholders. A stock split reduces the market value of individual shares, however, the market capitalization of the company does not change.
A company engages in a stock-split decision to make its stock more affordable if its price level is too high, which will increase the liquidity in the stock.
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