Retail investors are often on the lookout for stocks offering stock splits or bonus benefits, as these corporate actions can increase the number of shares held by them at no additional cost, even as the investment value remains the same.
Well, such investors are in luck as 9 stocks are set to undergo stock splits or issue bonus shares in the upcoming month of October, following recent corporate announcements.
1. Tata Investment
Shares of Tata group company, Tata Investment, have already seen a massive rally this week amid the announcement of the record date for its 1:10 stock split. Tata Investment share price has jumped 19% in the last five sessions, rising in three of the last four trading days.
The company on September 22 announced that it has fixed Tuesday, October 14, as the record date for a 1:10 stock split to determine eligible shareholders. Investors need to purchase the shares of this Tata group stock on or before October 13 for their names to appear on the Register of Shareholders, according to the T+1 settlement system of the Indian stock market.
Tata Investment share price has jumped 26% in a year and year-to-date (YTD) basis.
2. Gokul Agro Resources
BSE Smallcap constituent Gokul Agro Resources has announced a stock split in the ratio of 1:2. The company has fixed the record date for the stock split as October 14. This is the first stock split being undertaken by the company.
The edible oil manufacturer has seen a sharp rally in its stock, rising 68% in just six months. Meanwhile, it has gained 36% in a year. On a longer time frame, Gokul Agro Resources is a small-cap multibagger stock, surging 2709% in five years.
3. AGI Infra
Another small-cap stock, AGI Infra, has announced a stock split in the ratio of 1:5, meaning one share of face value of ₹5 will be split into five equity shares of ₹1 each. The company has fixed October 10 as the record date to determine the eligible shareholders for the stock split.
AGI Infra shares have, in the last one year, rallied 148.51%, delivering multibagger gains to investors. On a longer time frame, it has zoomed 4744%.
4. Sigma Solve
This microcap stock, with a market capitalisation of less than ₹500 crore, had announced a stock split in the ratio of 1:10. The company will split one share of ₹10 into ten shares of ₹1 each. Sigma Solve has kept the record date for the 1:10 stock split as October 6.
The IT services stock has been on a tear, surging 90% in six months. Meanwhile, in a year, it has gained 24%.
5. Sumeet Industries
The textile player Sumeet Industries has fixed October 3 as the record date for its stock split in the ratio of 1:5. The company’s shares will be divided into five shares of ₹2 each from one share of ₹10 face value.
The stock has low volumes, with a two-week average of just 3000 shares.
6. Paushak
In a double bonanza, small-cap chemical stock Paushak has announced a stock split and bonus share issue — record date for which has been set as October 3. First, the company’s shares will be split in the ratio of 1:2. This means, an investor holding one share of face value of ₹10 will have two shares of face value of ₹5.
After the stock split, the 3:1 bonus shares will come into effect. So, for every one share held, investors will get three additional shares. At the end of the bonus and stock split, an investor with one stock will end up with eight stocks.
7. Shilpa Medicare
Shilpa Medicare’s board announced a bonus issue in the 1:1 ratio, for which the record date has been fixed as October 3. This is the first bonus issue announced by the company in 12 years. The last bonus issue was in July 2013.
The small-cap pharma stock, though, up 15.18% in six months, has lost 9% in a year but rallied 118% in two years.
8. Julien Agro Infratech
Penny stock below ₹10, Julien Agro Infratech, has announced a bonus issue in the ratio of 1:10. This means that investors holding one share will get one other share for free. The record date for the 1:1 bonus share issue is set as October 6.
9. GEE
Another microcap stock, GEE Ltd, has announced a bonus issue in the 1:1 ratio. The record date for the same has been fixed as October 3. The company’s shares have seen a 40% jump in 6 months, while they have declined 3% in a year.
On a longer time frame, the stock has given multibagger returns, rising 103% in two years and 607% in five years.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
