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Varun Beverages goes for Stock Split
What is a stock split? Impact & benefits.
A thread 🧵⤵
#Stocksplit #varunbeverages
What is a stock split? Impact & benefits.
A thread 🧵⤵
#Stocksplit #varunbeverages
Varun Beverages got approval for a stock split on 2nd June via postal ballot.
VBL has a face value of Rs. 10, which will now be divided into a ratio of 1:2, making the face value Rs. 5.
Record date: 15th June 2023.
VBL has a face value of Rs. 10, which will now be divided into a ratio of 1:2, making the face value Rs. 5.
Record date: 15th June 2023.
This stock split will improve the liquidity of VBL
The company also wants to encourage small investors' participation.
The company also wants to encourage small investors' participation.
But, What is a stock split?
It is a corporate action where the company divides its shares into multiples.
The total value of the shares remains the same, but the number of shares outstanding increases.
It is a corporate action where the company divides its shares into multiples.
The total value of the shares remains the same, but the number of shares outstanding increases.
Impact of Stock Split:
- The share price will decrease as per the proportion.
- With more shares available in the market, it will increase liquidity.
- A lower share price after a split can be perceived as more affordable and accessible.
- The share price will decrease as per the proportion.
- With more shares available in the market, it will increase liquidity.
- A lower share price after a split can be perceived as more affordable and accessible.
It's important to know:
- There is no change in the market cap of the company.
- The stock split will not have any impact on the fundamentals of the company.
- There is no change in the market cap of the company.
- The stock split will not have any impact on the fundamentals of the company.
Benefits of a stock split: To Company
- Increased liquidity.
- Better accessibility.
- Positive perception of the company in the market.
- Increased liquidity.
- Better accessibility.
- Positive perception of the company in the market.
Benefits of a stock split: To Investors
- Lowered share price makes it affordable to invest.
- Improved liquidity makes it easy to buy or sell the stock.
- Existing investors will have more shares.
- Potential to capital appreciation.
- Lowered share price makes it affordable to invest.
- Improved liquidity makes it easy to buy or sell the stock.
- Existing investors will have more shares.
- Potential to capital appreciation.
Just like stock split, there are more corporate events, such as rights issues & bonus issues. If you want to know what's the difference between these three, click on
https://twitter.com/Finology_Quest/status/1574267441282093057?s=20
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