Monday, September 1, has been fixed as the ex-date for determining shareholder eligibility for the corporate action.
The ex-date is a crucial day in the stock market calendar, as it determines which investors are entitled to receive the benefits of a corporate announcement, whether dividends, stock splits, or bonuses.
To be eligible, investors must own the shares before the ex-date, meaning today is the cut-off for buying Pavna Industries shares. From September 1 onwards, the stock will trade on an ex-split basis.
A stock split does not alter the overall market capitalization or the value of an investor’s holdings but increases the number of shares by reducing their face value proportionately.
In Pavna Industries’ case, one equity share of Rs 10 face value will be split into ten equity shares of Rs 1 each. This move is generally aimed at enhancing liquidity and making the stock more affordable to a wider pool of retail investors.For instance, if an investor holds 100 shares of Pavna Industries with a face value of Rs 10 each before the split, post the corporate action they will hold 1,000 shares of Rs 1 each. The value of the total holding remains unchanged, but the share price adjusts downward in proportion to the split ratio.The market often views such actions as shareholder-friendly, as they improve the stock’s tradability and accessibility. With today being the last trading day to qualify for the split, Pavna Industries shares are expected to remain in focus on the exchanges.
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