Today, December 11, is the last day to buy four key stocks before they undergo significant changes tomorrow, December 12. These changes include stock splits, bonus issues, and buybacks, which can impact liquidity, valuations, and short-term price movements. Investors must act quickly to be eligible for these corporate actions.
Mrs Bectors Food has announced a 1:5 stock split, where each ₹10 share will be divided into five ₹2 shares. This change aims to increase participation and trading volume in the stock. The record date for this split is December 12, making today the final day to purchase shares and qualify.
Bharat Rasayan is undertaking two corporate actions simultaneously: a 1:1 bonus issue and a 1:2 stock split. The bonus issue will give shareholders one additional share for every share they hold, while the stock split will reduce the share price from ₹10 to ₹5. This combination is expected to boost liquidity and reward long-term investors.
Nureca has announced a share buyback at ₹330 per share, representing a 20% premium to the announcement day price. Despite the stock's significant decline from its 2021 peak, this buyback is a positive move for shareholders. Investors must purchase shares by today to qualify for the buyback, which will occur at a later date.
VLS Finance has approved a ₹100 crore share buyback at ₹380 per share. This buyback signals management's confidence in the company's intrinsic value and will return liquidity to eligible shareholders. The record date for this buyback is also December 12, making today the last chance to buy shares and qualify.
A record date is the cut-off date for determining which shareholders are eligible for corporate benefits like bonus shares, stock splits, dividends, or buybacks. Investors must purchase shares at least one working day before the record date due to the T+1 settlement cycle.
A stock split increases the number of shares by dividing existing shares into smaller denominations, improving liquidity and accessibility without changing the total value of holdings.
A bonus issue involves issuing additional shares free of cost to existing shareholders, signaling financial strength and increasing the share count without affecting the total investment value.
A share buyback occurs when a company repurchases its own shares from the market or shareholders at a set price, often at a premium, reducing the outstanding share count and potentially increasing earnings per share while returning capital to investors.
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