Multibagger stock surges ahead of record date for stock split

Shares of Mauria Udyog surged over 2% to ₹46 apiece on the BSE in Wednesday's early deals ahead of record date for sub-division for every One (1) Equity Share of ₹10/- each into Ten (10) Equity Shares i.e., in the ratio of 1:10. The company had announced stock split to improve the liquidity of equity shares with higher floating stocks and to make it more affordable to the investors.  

The company has fixed March 11, 2022 as the record date for the purpose of Split/Sub-division of the face value of the equity shares of the company from ₹10/- per share of the company into the shares of ₹1/- each, it had announced in an exchange filing.

A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. Stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.

A company engages in stock-split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.

The multibagger stock has rallied over 255% in a year's period whereas it is up more than 70% in 2022 (year-to-date or YTD) so far. Mauria Udyog Limited is imvolved in manufacturing and exporters of welded steel cylinders, valves, regulators and related accessories.