Sikko Industries Set for 1:10 Stock Split on November 27

Ahmedabad, November 25: The shares of Sikko Industries will trade ex-split on November 27. An ex-split date is the date before which investors must buy the shares of a company to have their names in the eligible shareholders’ list. The company looks at its shareholders’ list on the record date to determine eligible shareholders for the stock split. Since Sikko Industries has fixed both the ex-split date and the record date on November 27, investors must buy the shares of the company by the end of tomorrow’s trading session to be eligible for the stock split.

Sikko Industries Announces Stock Split of 1:10

Sikko Industries has announced a stock split with the ratio of 1:10. Under the stock split, the shares of the company will subdivide from the current face value of ₹10 each to a face value of ₹1 each. This means that eligible shareholders holding 1 share will receive 9 additional shares, taking their total to 10 shares.

However, on November 27, the shares will trade ex-split and the share price will fall and remain 1/10th of the closing price on November 26. This happens to ensure that with the credit of extra shares, the overall investment value of shareholders remains the same. Hence the fall in the share price will lead to no monetary loss, and will not change the company’s overall market capitalisation.

Shares Fall by 0.38% to ₹113.64

As of 9:20 AM, Sikko Industries share price was down by 0.38%, or 0.43 points, and was trading at ₹113.64. The traded volume stood at 3.35 thousand shares, with the company’s market cap at ₹245 crore. The shares have their 52-week high at ₹136.63 and their 52-week low at ₹60.65.

Investor Takeaway for Sikko Industries

Sikko Industries has announced a 1:10 stock split to reward shareholders with 9 additional shares. Eligible shareholders will hold 9 more shares of the company at no additional cost. Furthermore, the reduced share price will also lead to better liquidity, and attract more investors. However, investors must buy the shares of the company by the end of tomorrow’s trading session to be eligible for the stock split. It is expected that the shares of Sikko Industries may see higher demand, as investors look to buy the shares before the ex-split and record date on November 27.

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