After the share split, Vishwaraj Sugar share price would come down at around ?30 to ?32 from its current ?154 per stock mark.
The sugar manufacturing company informed BSE that its board has approved split of its shares from existing face value of ?10 into ?2
Vishwaraj Sugar stock split: Vishwaraj Sugar Industries today informed Indian exchanges that its board has approved sub-division of the company shares. The BSE informed about the sugar manufacturing company's decision and said that company's board has approved split of its shares from existing face value of ?10 into ?2. Board's decision will become effective after the approval of the members of general meeting.
Hailing the decision of the company stock experts said that the company board's decision will enable more stock investors to invest in Vishwaraj Sugar shares as it would come down at around ?30 to ?32 levels from its current price of near ?154 per stock mark.
The BSE exchange informed about the Vishwaraj Sugar Industries share split citing, "Vishwaraj Sugar Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 18, 2021, inter alia, has approved, subject to the approval of the members of general meeting, sub-division of equity shares of the face value of ?10/- each in the capital of the Company into face value of ?2/- each."
Speaking on the Vishwaraj Sugar Industries share split decision; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The decision won't have much impact on teh current share holders of the company. But, after the sub-division of shares into 1:5, Vishwaraj Sugar share price would come down from current ?154 per share levels to around ?30 to ?32 mark making it possible for more small investors to invest in the stock. So, the decision is expected to increase trade volume of the sugar stock post-share split." However, he said that after share split, company's fundamentals will remain same and stock movement will depend on the company's performance ahead.
Advising small investors to buy stock only after there is rise in volume of its trade; Ravi Singhal, vice Chairman at GCL Securities said, "There won't be any impact on the current fundamentals of the company after the sub-division of company shares. However, if we look at the current average trade volume of the stock, it is around 2 lakh. So, after the share split, fresh new buyers should buy the stock only when there is rise in trade volume of the stock from current average levels."