NewsCorporate ActionsMCX Stock Split: Last Day to Buy Shares Today Before January 2 Record DateMCX Stock Split: Last Day to Buy Shares Today Before January 2 Record Date
Multi Commodity Exchange of India Ltd. announces January 1 as the last trading session for investors to purchase shares and qualify for the company's inaugural 1:5 stock split. Each existing share with face value of ₹10.00 will convert into five shares of ₹2.00 each, effective January 2. The shares have shown strong performance with 79% year-to-date returns and closed 2% higher at ₹11,127.00 in the latest session.
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Multi Commodity Exchange of India Ltd. reaches a significant milestone on January 1, marking the final trading session for investors to purchase shares and qualify for the company's first-ever stock split. This corporate action represents a strategic move to enhance share accessibility and liquidity for retail investors.
Stock Split Details and Timeline
The board approved the subdivision plan in September, establishing a 1:5 split ratio that will take effect on January 2. The stock split mechanics are structured as follows:
| Parameter: | Details |
|---|---|
| Split Ratio: | 1:5 |
| Current Face Value: | ₹10.00 per share |
| New Face Value: | ₹2.00 per share |
| Ex-Date: | January 2 |
| Record Date: | January 2 |
| Last Date to Buy: | January 1 |
Each existing share with a face value of ₹10.00 will be converted into five shares with a face value of ₹2.00 each. The record date for determining eligible shareholders is also set for January 2.
Impact on Shareholders
The stock split will directly impact the number of shares held by shareholders while keeping their overall investment value unchanged. For example, if a shareholder currently owns 10 shares of Multi Commodity Exchange of India Ltd., post the split, the investor will hold 50 shares, each with a face value of ₹2.00 instead of ₹10.00.
| Example Scenario: | Before Split | After Split |
|---|---|---|
| Number of Shares: | 10 | 50 |
| Face Value per Share: | ₹10.00 | ₹2.00 |
| Total Face Value: | ₹100.00 | ₹100.00 |
The stock will begin trading on an ex-split basis from January 2, which means only those who purchase the shares on or before January 1 will be eligible to receive the additional shares as part of the subdivision.
Market Performance and Latest Trading
Multi Commodity Exchange of India Ltd. shares have demonstrated robust performance across multiple timeframes, reflecting strong investor confidence in the commodity exchange platform. On the latest trading session, the shares closed 2% higher at ₹11,127.00 on the exchange.
| Performance Metric: | Value |
|---|---|
| Year-to-Date Returns: | +79% |
| One-Month Returns: | +11% |
| Market Capitalisation: | ₹52,102.00 crores |
| Latest Closing Price: | ₹11,127.00 |
The strong performance underscores the company's position as India's leading commodity derivatives exchange, providing comprehensive trading platforms for various commodity segments including bullion, energy, metals, and agricultural products.
Investment Considerations
Investors must understand the settlement mechanics to qualify for the stock split. With India following the T+1 settlement cycle, purchasing shares on the record date itself will not qualify investors, as ownership transfer requires at least one trading day. The stock split will increase the number of outstanding shares while maintaining total investment value, potentially enhancing liquidity as the adjusted stock price becomes more accessible to retail investors.
Multi Commodity Exchange of India Ltd. operates as the country's premier listed commodity derivatives exchange, facilitating online trading in futures and options across diverse commodity categories including gold, silver, crude oil, natural gas, base metals, and agricultural products.
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