Rhetan TMT Ltd, which has given multibagger returns to investors in the last six months, will trade ex-split and ex-bonus on Friday, 10 March.
The company board has earlier approved stock split from ₹10 to Re 1 i.e., in the ratio of 1:10, and fixed 10 March, 2023 as the record date for the purpose of determining the eligibility of the shareholders.
Stock split increases the number of shares of a company's stock without a change in the shareholders' equity. Companies often split shares of their stock to make them more affordable to investors. Unlike issuing new shares, a stock split does not dilute the ownership interests of existing shareholders.
For example, if you own 1000 shares of a company that trades at ₹100 per share and the company declares a two-for-one stock split, you will own 2000 shares at ₹50 per share immediately after the split.
The Gujarat-based company has also announced bonus issue of shares in the proportion of 11:4 and the record date will be the same as the one for stock split.
Bonus shares are the additional shares that a firm gives to its existing shareholders on the basis of shares owned by them. Bonus shares are issued to the shareholders without any additional cost.
On Monday, the shares of Rhetan TMT closed 0.38 per cent lower at ₹511.05 on BSE. The stock has given multibagger returns to investors since its listing on the BSE SME platform in September 2022. The shares of Rhetan TMT, which has remained the top-performing IPO, have risen over 751.04 per cent in the last six-month period.
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