Credent Global Finance, a small-cap NBFC with a market valuation of ₹150.27 crore, has announced its first-ever stock split in a 1:5 ratio. This means each equity share with a face value of ₹10 will be split into five shares with a face value of ₹2 each. The company has set October 15, 2024, as the record date to determine the shareholders eligible for the split. This decision was approved by shareholders during the company’s 34th Annual General Meeting on September 30, 2024.
The primary purpose of the stock split is to improve the liquidity of the company’s shares and make them more affordable for retail and small investors, thereby expanding the investor base. The Board of Directors recommended the split at a meeting held on September 6, 2024. The Articles of Association allow such a split, provided it receives shareholder approval.
For shareholders holding shares in physical form, old share certificates with a face value of ₹10 will be automatically canceled, and new certificates with a face value of ₹2 will be sent out. For those holding shares in dematerialized form, the adjusted shares will be directly credited to their Demat accounts.
Despite the stock split, Credent Global Finance’s share price has shown bearish trends, with strong resistance at ₹160. Analysts predict that if the stock closes below the support level of ₹138, it could drop further to ₹111 in the near term.
This move by the company is part of a broader strategy to make its shares more accessible to smaller investors while boosting liquidity in the market.
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