Shriram Finance Stock Split: Shares of Shriram Finance are in the spotlight as investors gear up for the company’s 1:5 stock split, set to take effect tomorrow, January 10. Ahead of the upcoming stock split, the company’s stock is trading in a lower note today, with its shares as of 11:51 am IST trading at Rs 2,846.45 apiece, down by 1.80 percent. The shares of the company today opened the trading at Rs 2,903.75 apiece.
With a 1:5 stock split ratio, here are 6 key points you need to know about Shriram Finance’s upcoming corporate action
Shriram Finance’s stock split
In simple terms, stock split is a corporate action, when a company divides its existing shares into multiple new shares. In Shriram Finance’s case, each share with a face value of Rs 10 will be subdivided into five shares with a face value of Rs 2. While the total value of the shares will remain the same, the new lower price per share will make it more affordable for retail investors.
Record Date for stock split
Investors need to hold Shriram Finance shares before January 10, to be eligible for the stock split. This is the record date when the company will decide on which shareholders will qualify for the split.
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Ex-Date for stock split
Shriram Finance shares will start trading ex-split on January 10, and this also means that any purchase made on or after this date will not grant the buyer the benefits of the stock split.
Corporate Approval and Shareholder
The decision to split the stock was approved by shareholders through a postal ballot in December 2024.
“In furtherance to our earlier intimations dated October 25, 2024, November 20, 2024, December 20, 2024 on the captioned subject and pursuant to approval accorded by the Shareholders of Shriram Finance Limited (“the Company”) through Postal Ballot on December 20, 2024 for the Sub-division/Split of face value of Equity Shares of the Company and Regulation 42 of the Listing Regulations, the Company has fixed Friday, January 10, 2025 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of Sub-division/Split of face value of Equity Shares of the Company,” the company said through an exchange filing on December 23, 2024.
Post-split, adjustments will be made to the strike prices and lot sizes of futures and options contracts linked to Shriram Finance.
Shriram Finance stock performance
Stock splits often generate positive market sentiment as they increase liquidity and attract more retail investors.
Shriram Finance share price rose by 2.14% over the past six months, bringing the stock to Rs 2,851.85. Similarly, over the past year, the company’s stock has delivered a return of 31.53%.
With a market capitalisation of Rs 1.09 lakh crore, Shriram Finance stock price over the last two years had an upward trajectory, with a multibagger return of 123% and 139% in the last three years.
Shriram Finance Q2 Earning Highlights
For the quarter ending September 2024, the company reported a net sales of Rs 10,089.54 crore, a 17.93% year-on-year surge. Total income increased to Rs 10,089.54 crore, up from Rs 8,555.50 crore last year. Profit before tax grew to Rs 2,751.53 crore, while net profit rose to Rs 2,071.26 crore from Rs 1,750.84 crore.
Shriram Finance is a leading non-banking financial company (NBFC) in India, formed through the merger of multiple Shriram Group entities in 2022 and offers various financial products like loans for commercial vehicles, personal loans, and gold loans.