A stock split or sub division of shares is a corporate action. It happens when a listed company hikes the number of its shares to boost the stock’s liquidity.
New Delhi: The shares of OK Play India was in focus on Monday after the stock market opened. Earlier, the Board of Directors of OK Play India had said that the stock split from one Rs 10 per equity share into ten of Rs 1 per equity share for its eligible shareholders. It is also important to note that the record date by the company to ascertain the eligibility of shareholders for the stock split issue has been fixed on March 11.
A stock split or sub division of shares is a corporate action. It happens when a listed company hikes the number of its shares to boost the stock’s liquidity. The number of shares outstanding increases by a specific multiple, but the total currency value of all shares outstanding remains the same as there is no change in the company’s total market capitalization.
In a stock market exchange filing, OK Play India said: “We wish to inform you that the Board of Directors at its meeting held today has accorded its approval to sub-divide/split the Equity Shares of the Company, Division of every 1 (one) equity share of the nominal/face value of Rs. 10/- (Rupees ten only) each into 10 (Ten) equity shares of the nominal/face value of Rs. 1/- (Rupees One only) each.”
“….the Company has fixed Monday, 11th March 2024 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of sub-division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, will be sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each,” the company said in a separate stock exchange filing.
Disclaimer: This article is for informational purposes only and not an investment advice