Stock Split : Info Edge (India) Limited, NAUKRI

What is a Stock Split?

A stock split refers to the corporate action where a company divides its existing shares into multiple new shares to boost the liquidity of its stock. While the overall market capitalization of the company remains unchanged, the individual share price is adjusted downward in accordance with the split ratio.

It is important to note that a stock split does not change the overall value of an investor’s holdings. As example, if you are the investor owned 1 shares of a company priced at ₹7000  split, they would own 5 shares priced at ~₹1400 each after the split, maintaining the same total investment value. Companies typically execute stock splits when their share prices become too high, making it difficult for average investors to buy shares, or when they wish to increase the company’s market capitalization through improved affordability.

Info Edge (India) Limited’s Stock Split

Info Edge (India) Limited, known as NAUKRI , has announced an upcoming stock split that has garnered significant interest among investors. Board Meeting to be held on 05-Feb-2025  decided to reduce its face value per share from Rs 10 to Rs 2.  which means split will be 1:5  ratio. This strategic decision, effective on the split ex-date of May 7, aims to make the shares more liquidity and volumes.

As part of this stock split, current shareholders will see their total number of shares increase, effectively multiplying each existing share by five. This means that a shareholder who holds 100 shares pre-split will post 7th may, they will hold 500 shares.

The split ex-date is crucial for investors, as only those who own shares before this date will benefit from the increased number of shares that results from the split. After May 7, trading in Info Edge shares will reflect the change in share value, and price will be adjust ( as per current price it will be approx. 1400)  which is very attractive price for those unable to effort 7000- 8000 for a single share.