Vardhman Polytex shares jump 5% ahead of record date for 10:1 stock split

The textile company had last week informed that the board has fixed May 18, 2024, as the record date for the sub-division/split of equity shares. These equity shares having a face value of ₹10 each will be split into 10 equity shares having a face value of ₹1 each.

The record date of a stock split is the day when the company checks its records to identify the shareholders eligible to receive additional shares. On the record date, shareholders must have the stock in their demat accounts to turn eligible for the reward of a corporate action.

On Friday, the Vardhman Polytex stock hit the 5% upper circuit at ₹11.60, its highest level in 52 weeks.

At the time of announcing the 10:1 stock split in March 2024, Vardhman Polytex said that the move aims to enhance the liquidity of the shares of the company and encourage the participation of small investors.

After the sub-division of shares, the authorised share capital of the company stands at ₹70 crore divided into 70 crore equity shares of ₹1 each.

Established in 1980, Vardhman Polytex is a Ludhiana-based exporter and supplier of yarn products made with cotton and polyester. The company says that its annual turnover is ₹550 crore and the number of employees working with the company stands at 500.