Regis Industries Announces 10:1 Stock Split; January 16 Set as Record Date

By Shehnaz Shaikh
December 13, 2024

Regis Industries Limited, a microcap Non-Banking Financial Company (NBFC), has announced its first-ever stock split. The company, listed on the Bombay Stock Exchange (BSE), aims to enhance liquidity and make its shares more accessible to investors by splitting the face value of its equity shares.

Details of the Stock Split

What is a Stock Split?

A stock split is a corporate action that increases the number of shares while proportionally reducing the price per share. In this case, Regis Industries is implementing a 10:1 stock split, meaning one share will be divided into ten shares.

Key Highlights

1. Current Face Value: ₹10 per share.
2. New Face Value: ₹1 per share.
3. Effective Date:
   • Record Date: January 16, 2025. Only shareholders who own the stock by this date will be eligible for the split.
4. Objective:
   • Enhance liquidity in the stock market.
   • Increase affordability and accessibility for retail investors.
5. Impact on Shareholders:
   • Share quantity will multiply by 10.
   • Share price will adjust proportionally to reflect the increased share count.
   • No change in total investment value for shareholders.

Impact on Share Price and Market Capitalization

• Pre-Split Example:
  • If the share price is ₹500 with 1,000 shares outstanding, the market capitalization is ₹5,00,000.
• Post-Split Example:
  • The share price would adjust to ₹50, and the total shares outstanding would rise to 10,000, keeping the market capitalization constant at ₹5,00,000.

Benefits for Investors

1. Increased Liquidity: The split allows more shares to be available for trading, improving market activity.
2. Affordability: Lower share prices post-split make it easier for small investors to buy the stock.
3. Potential for Retail Participation: Attracts more retail investors, potentially increasing demand.

Next Steps for Shareholders

• Ensure Eligibility: Purchase shares before January 16, 2025, to be eligible for the split.
• Monitor Post-Split Activity: Review portfolio adjustments and market movements after the split.

This stock split reflects Regis Industries’ strategy to increase its market appeal while providing existing shareholders with an opportunity to benefit from enhanced liquidity and a wider investor base.

Regulatory Announcement

Regis Industries has officially announced a 1:10 stock split, subject to shareholder approval.

This strategic move aims to enhance share liquidity and make stock ownership more accessible to a broader range of investors.

Key Details:

• Stock Split Ratio: Each existing equity share with a face value of ₹10 will be subdivided into 10 equity shares with a face value of ₹1 each.
• Shareholder Approval: The proposal is pending approval from the shareholders.
• Authorized Share Capital: The authorized share capital is set to increase from 2 crore shares to 20 crore shares.
• Paid-up and Subscribed Capital: This will expand from 1.72 crore shares to 17.20 crore shares.

The company anticipates completing this corporate action within three months from the date of receiving shareholder approval, subject to the fulfillment of all statutory requirements.

Following the announcement, Regis Industries’ stock experienced significant activity, with shares rising by 20% to ₹181.10.

This stock split is designed to make Regis Industries’ shares more affordable and increase market participation, reflecting the company’s commitment to enhancing shareholder value.

Share Price Performance

• Current Price: ₹177.45 (as of December 12, 2024).
• Returns:
  • 6 Months: +35%
  • 1 Year: +90%
  • 2 Years: +932%
  • 3 Years: +1216%

Impact of the Stock Split

A stock split divides the face value and market price of shares while maintaining the company’s overall valuation. This move is expected to:

1. Increase Liquidity: With smaller individual share prices, more investors can participate.
2. Enhance Market Reach: Broaden the stock’s appeal to retail investors.

Conclusion

Regis Industries’ 10:1 stock split demonstrates its commitment to enhancing shareholder value and market participation. Investors are advised to keep track of the record date and consider the potential benefits of increased liquidity and accessibility.

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