Stock Splits are a market mechanism that creates liquidity, enthusiasm, and accessibility in retail investors.
They can be an effective and easy mechanism to boost its stock market portfolio and evaluations.
Relaxo Footwears Limited is an Indian multinational footwear manufacturer based in New Delhi. It is the one of largest footwear manufacturers in India. Relaxo was founded in 1976, by Mukand Lal Dua and Ramesh Kumar Dua.
The company makes products under multiple brands including Flite, Sparx, Bahamas, and Schoolmate.
In this article, you will learn all about Relaxo Stock Split History, What is a stock split, the purpose of a stock split, key features, and Stock splitting is good or bad.
Relaxo Share Split History
|Announcement Date||Old FV||New FV||Record Date||Ex-Split Date|
|July 27, 2013||5||1||November 25, 2013||November 22, 2013|
The Last time Relaxo split their share in 2013 from Old face value 5 to new face value 1.
So, Currently, Relaxo’s face value is 1.
What Is The Stock Split Ratio?
The Stock Split ratio divides the Company’s issued shares into new shares to boost liquidity.
Split ratios can look like 2:1,3:1, or 4:1 for the company shares.
What Is The Purpose Of Splitting Stocks?
Splitting shares is generally done when the share prices have reached a high price range.
A company stock trending at a higher range puts the Stock out of the grasp of retail and small investors to invest.
Stock splits make investing in the Company’s Stock much more affordable and easier.
Do Stocks Usually Go Up After A Split?
Yes, the inflow of new investment from small to mid-sized retailers and increased liquidity causes stocks to go up.
Is Stock Split Good Or Bad?
Stock Splits neither devalue nor add value to a company’s Stock, so inherently, they are neutral.
However, because they increase liquidity and accessibility to the new trader, stock splits are seen positively.
Can Stock Split With A Face Value Of 1
No, the stock split cannot happen with a face value of 1 because it is the Stock’s underlying value.
Stock splits do not influence the value of Stock, and subsequently, Company cannot split a share with a face value of 1.
Should I Sell Before The Stock Split?
No, stock splits tend to increase the stock price range for a period, leading to loss.
If you are thinking of selling, do it after the stock split.
What Happens If I Buy A Stock After The Split Record Date?
You will be eligible to receive the new stocks issued in the Split.
However, you can buy stocks between the Split and the effective date to take in the new stocks.
How Many Times Can A Stock Split?
There is no limit to how many times a company can split a Stock, and you have nothing to worry about.
What Happens To A Stock After A Company Splits?
Based on the percentage of Stock that is decided by the management of the Company, being split between two companies.
A shareholder can end up with an agreed-upon percentage of stocks of new and old companies.