Earlier this month, Angel One confirmed February 26 (Thursday) as the record date to determine whether shareholders qualify for the stock split. Meanwhile, shares were in the red today.
What does this mean for shareholders?
If a shareholder owns one share priced at Rs 100, a 1:10 share split will convert it into 10 shares priced at Rs 10 each. The total asset value remains unchanged at Rs 100. Once the stock starts trading ex-split, the price may appear significantly lower, but this simply reflects the post-corporate action adjustment.
Only shareholders who own the shares on the record date are eligible for the stock split.
Companies typically announce stock splits to improve liquidity. While the number of shares outstanding increases, the company’s overall market capitalization remains unchanged. A lower share price could make the stock more accessible to retail investors, potentially improving participation and trading volume.
Angel One Stock Price
Angel One shares were trading marginally lower, down 0.30% to Rs 2,452.80 apiece as of 12:10 pm. The stock is down more than 5% in the past week and more than 2.5% in the past month.
The company is currently trading at a price-to-earnings ratio of 29.06 and has a market capitalization of Rs 22,299.12 crore.
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