Pondy Oxides Shares Set for Stock Split: Crucial Deadline Looms for Retail Investors

Pondy Oxides Shares Set for Stock Split: Crucial Deadline Looms for Retail Investors​

Pondy Oxides & Chemicals, a key player in lead alloys and plastic additives, has set a definitive date for its impending stock split. The company announced that July 21 (Tuesday) will serve as the record date for the corporate action. This means Monday is the last opportunity for interested investors to purchase the shares and be eligible for the two-for-five stock split.

Under SEBI's T+1 settlement cycle, investors must acquire the shares at least one trading day before the record date. By purchasing the stock today, shareholders can ensure their holdings are credited to their demat accounts in time, making them eligible for this significant corporate move.

Details of Pondy Oxides Stock Split​

The lead manufacturer and pioneer in lead alloys announced its decision to split two shares into five shares. The original face value was Rs 5 per share, which will be reduced to a new face value of Rs 2 per share following the split.

This strategic move is designed by the company's board to enhance share liquidity. Pondy Oxides aims to encourage greater participation from small investors by making its stock more affordable and accessible for the retail market. Following the split, the company’s authorised capital will increase from 4.03 crore shares to 10.07 crore shares.

Impact of Stock Split on Shareholders' Holdings​

The upcoming stock division does not alter the overall market capitalization of Pondy Oxides & Chemicals. While the number of outstanding shares increases due to the split, the total value of any shareholder’s holding remains constant.

For instance, an investor who holds 200 shares at a price of Rs 100 each will receive 500 shares at Rs 40 each after the split. Crucially, their investment value will remain unchanged at Rs 20,000, regardless of the increased number of shares.

Performance and Market Standing of Pondy Oxides​

Pondy Oxides & Chemicals holds the position as India's largest secondary lead manufacturer in this sector. The company currently boasts a market capitalization amounting to Rs 4,120 crore.

In terms of recent stock movement, the share price saw volatility recently. It dropped more than 5% over the past week but registered a gain exceeding 1% over the last month. Looking at the longer term, the stock delivered impressive returns, registering over 37% in one year and an astounding 580% across three years.