Atul Auto 'splits' to a new high
Atul Auto opened higher today at Rs.409, going on to quickly hit a new high at Rs.419.15. It has come off the high but remains 2.5% higher in the green.
The stock has jumped up as from today it has turned ex-stock split. It’s record date is 15th Sept for sub-division of face value of shares from Rs.10 to Rs.5/each. This split, by saying it has gone ‘ex’ today means that the split has come into effect.
In a stock split, there is no change in the equity capital and market cap – only thing which changes is the public float. The aim of the stock split is essentially to increase liquidity, increase participation. Thus as an investor, though the share price will later decrease, equivalent to the stock split, post the split, the number of shares one holds increases.