Stock Splits in September 2023

A stock split is when the board of directors of a company decides to increase the number of shares of a company without diluting the share value. This happens when the company is concerned about the share price being too high, which can be unappealing to the investors. 

Let us consider an example to understand stock split clearly. Suppose you hold one share of XYZ company. The company declares a stock split of 3 for 1. In this case, the company would grant you 3 additional shares for 1 share you hold. After the split, the worth of 3 shares would be the same as the 1 share you were holding before the split.

Companies declare stock splits to reduce the value of their shares, making it affordable for potential investors. In this article, find out the upcoming stock splits in September 2023. 

List of Upcoming Stock Splits in September – 2023

Here is a list of companies in India that declared stock splits in September 2023. 

• Remedium Lifecare

Remedium Lifecare is a pharmaceutical company which holds two business verticals – products and services. Their product vertical contains the sale of APIs ( (Active Pharmaceutical Ingredients) and intermediaries to innovators and generic pharmaceutical players in both Indian and international markets. 

As of September 1, 2023, the market capitalisation of Remedium Lifecare is ₹836 crore, and the PE ratio (TTM) is 200.48. The new face value of the shares of the company is ₹5 against ₹10.

• ADF Foods

ADF Foods is an Indian-based company involved in manufacturing and distributing foods to more than 55 countries globally. The products of the company include chutneys, pickles, sauces, ready-to-cook, pastes, frozen foods and ready-to-eat products. 

As of September 1, 2023, the market capitalisation of ADF Foods is ₹2,381 crore, and the PE ratio (TTM) is 37.52. The new face value of the shares of the company is ₹2 against ₹10.

• Sarveshwar Foods

Sarveshwar Food operates in the Agro-Processing sector. Their products include different rice variants like Indian traditional Basmati rice, Pusa Basmati Rice, 1121 Basmati Rice, Sharbati Rice, IR 8 rice, and PR 11 rice. 

As of September 1, 2023, the market capitalisation of Sarveshwar Foods is ₹425 crore, and the PE ratio (TTM) is 103.57. The new face value of the shares of the company is ₹1 against ₹10.

• JB Chemicals and Pharmaceuticals

JB Chemicals and Pharmaceuticals is a pharmaceutical company in India that manufactures and markets a wide range of pharma formulations, APIs and herbal remedies. The company also offers media products like X-ray, ultrasound and MRI worldwide. 

As of September 1, 2023, the market capitalisation of JB Chemicals and Pharmaceuticals is ₹21,689 crore, and the PE ratio (TTM) is 48.51. The new face value of the shares of the company is ₹1 against ₹2.

Is Stock Split Beneficial for Investors?

A stock split is neither an advantage nor a disadvantage. After the stock split, the position of the investor remains the same. The value of the investment remains the same, but only the stocks you hold will change. The stock split allows the company to make its stock price affordable by not changing the market capitalisation or ownership metrics. 

Ultimately, whether or not a stock split is a good idea for a particular company will depend on several factors, including the company’s size, stock price, and overall financial performance.

Conclusion

There are several reasons why a company might decide to split its stock. One reason is to make the stock more affordable to a wider range of investors. Another reason is to improve the stock’s liquidity or the ease with which it can be bought and sold. A stock split can also be seen as a positive signal to investors, as it can be seen as a sign that the company is doing well and is confident in its future.

However, it is important to note that a stock split does not change the company’s underlying value. The company’s total market capitalisation will remain the same after the split.

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