The company recently announced a stock split in the ratio of 5:2, effectively reducing the face value of its equity shares from Rs 5 to Rs 2 per share. A stock split increases the number of outstanding shares while reducing the face value proportionately, making the stock more affordable and enhancing liquidity without changing the overall market capitalization of the company.
Since stock exchanges follow the T+1 settlement cycle, shares must be bought at least one trading day prior to the record date for investors to be eligible.
This means that today is the crucial cut-off day for buying Dev Information Technology shares to qualify for the split. Any purchases made tomorrow or later will not make investors eligible, as those trades will be settled post the record date.
Why it matters for investors?
A stock split often attracts fresh retail participation, as the reduced face value makes the shares more accessible to a wider base of investors. While the split itself does not impact the company’s fundamentals, it generally improves liquidity in the counter and can help boost trading volumes.With the stock splits, the companies aim to broaden their investor base and provide enhanced value to shareholders through greater participation in their equity.
About Dev Information Technology
Dev Information Technology is a global IT services provider focusing on digital transformation and innovation. Known for delivering robust solutions, the company emphasizes continuous innovation, quality, streamlined processes, and technological expertise.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
