Cochin Shipyard Stock To Trade Ex-Split On January 10

Cochin Shipyard Ltd., the defense public sector undertaking, is set to perform a stock split with January 10 as the record date to determine the eligibility of shareholders to qualify for this corporate action. The stock will trade ex-split on the same day on which it will start trading at the new adjusted price after the split.

The company has decided to split the stock in a 2:1 proportion, meaning those who hold one stock with a face value of Rs. 10 will have two stocks with a face value of Rs. 5 each after the split. Companies usually conduct stock splits to make the stock more affordable, even though the underlying value of the company has not changed.

Moreover, the subdivision of shares will increase the company”s current outstanding equity share number to 26.31 crore from 13.15 crore. Currently Cochin Shipyard”s stock is trading at Rs. 1,293.65, which will be reduced to Rs. 646.825 after the split.

Shares of the Cochin Shipyard have increased by 8% in the past month and 20% in the past year, and two analysts have “buy” ratings on the stock, while another two advise investors to hold the stock.