Several companies are set to trade ex-split starting Monday, potentially enhancing liquidity for investors. The stock splits, which increase the number of outstanding shares while reducing the face value per share, are expected to make these stocks more accessible to a broader range of investors.

Adani Power's 5:1 Split

Adani Power, a key player in the Indian power sector, leads the pack with a significant 5:1 stock split. The company's shares will split from a face value of Rs 10.00 to Rs 2.00, with the record date set for September 22. Investors who wished to be eligible for this split needed to have purchased Adani Power shares by September 19.

Tech Sector Split: Nazara Technologies

In the technology sector, Nazara Technologies is implementing a 2:1 stock split. The company's shares will split from a face value of Rs 4.00 to Rs 2.00 per share. The record date for this split is set for September 26, with the last date to purchase shares for split eligibility being September 25.

Infrastructure and Agriculture Sector Splits

Two other companies are also joining the stock split trend:

1. PVV Infra Ltd: The infrastructure company will split its shares from Rs 10.00 to Rs 5.00 face value.
2. R M Drip and Sprinklers Systems Ltd: This agricultural systems company will also split its shares from Rs 10.00 to Rs 5.00 face value.

Both PVV Infra and R M Drip and Sprinklers Systems have set their record dates for September 26, with September 25 being the last date for investors to purchase shares to be eligible for the split.

Implications for Investors

Stock splits are generally viewed as a positive move by companies to improve stock liquidity. By increasing the number of outstanding shares and reducing the face value per share, companies aim to make their stocks more attractive and accessible to a wider range of investors. However, it's important to note that stock splits do not inherently change the overall value of an investor's holdings or the company's market capitalization.

Investors should be aware that stock prices typically adjust in proportion to the split ratio. For instance, if a stock trading at Rs 100.00 undergoes a 2:1 split, the post-split price would theoretically be Rs 50.00, but an investor would hold twice as many shares.

As these companies prepare for their respective stock splits, market participants will be keenly watching for any changes in trading volumes and investor interest in the coming weeks.

In a series of corporate actions, four companies have announced stock splits, with record dates scheduled for this week. The companies implementing these splits are Zydus Wellness Ltd., GHV Infra Projects Ltd., Kesar Enterprises Ltd., and Tourism Finance Corporation of India Ltd.

Company-Specific Stock Split Details

GHV Infra Projects Ltd.

GHV Infra Projects Ltd. is set to split its shares from a face value of Rs 10.00 to Rs 5.00. The record date for this stock split is September 16.

Kesar Enterprises Ltd.

Kesar Enterprises Ltd. has announced a more significant split, dividing its shares from a face value of Rs 10.00 to Rs 1.00 per share. The record date for this split is September 18.

Zydus Wellness Ltd.

Zydus Wellness Ltd. will be splitting its shares from a face value of Rs 10.00 to Rs 2.00. The record date for this corporate action is also September 18.

Tourism Finance Corporation of India Ltd.

Tourism Finance Corporation of India Ltd. has declared a stock split from Rs 10.00 to Rs 2.00 per share. The record date for this split is set for September 19.

Implications for Investors

Due to India's T+1 settlement cycle, investors must purchase shares at least one trading day before the respective record dates to be eligible for these stock splits.

Stock splits are often implemented to increase the liquidity of shares and make them more accessible to a broader range of investors. While the overall value of an investor's holding remains the same, the number of shares increases proportionately to the split ratio.

Investors and market participants are advised to take note of these record dates and plan their investment strategies accordingly. As always, it's recommended to conduct thorough research and consider seeking professional financial advice before making investment decisions based on corporate actions such as stock splits.