Multibagger SME stock split record date on Monday. Last day to buy for eligibility

After gaining over 4,400% from its IPO issue price of Rs 75, Bondada Engineering, which listed on the BSE SME in August 2023, will start trading ex-split from the upcoming Monday. The company had announced a stock split earlier in July, in a ratio of 1:5, and set September 2 as the record date for this purpose.

This means that today is the last day to buy shares of the company to be eligible for the stock split.

“We would like to inform you that the board of directors of the Company (“Board”) at its meeting held today i.e., Monday, July 15, 2024, has inter-alia considered and approved the following matters: Considered and approved the sub-division/split of existing 1 (One) equity share of the Company having a face value of Rs. 10/- (Rupees Ten only) each, fully paid-up, into 5 (Five) equity shares having a face value of Rs. 2/- (Rupees Two only) each, fully paid-up, subject to shareholder’s approval,” said the company in a previous filing to the exchanges.

This is the first instance of Bondada Engineering splitting its shares, according to data from Trendlyne.

A 1:5 stock split means that for every one share an investor holds, they will receive four additional shares, resulting in a total of five shares. The value of each share is proportionally reduced, so the overall value of the investment remains unchanged.In this case, each share with a face value of Rs 10 will be split into five shares with a face value of Rs 2 each.This type of split increases the number of shares outstanding and makes the stock more affordable to a broader range of investors.Bondada Engineering is an infrastructure solutions provider operating across various sectors, including telecommunications, renewable energy, and construction. The company offers services such as designing and constructing optical fiber networks, and cell towers, and providing maintenance services.

The shares of Bondada Engineering have yielded impressive returns of 717% in the current calendar year and gained 272.6% over the past six months.

The shares of Bondada Engineering closed 5% lower at Rs 3,409 on Thursday on the BSE.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)