Share Price of HEG Slips as Stock Trades Ex-Split: Key Details You Need to Know

HEG Ltd Share Price Declines Post Stock Split

The share price of HEG Ltd dropped by 2.75% on October 18, 2024, hitting a day’s low of Rs 488.40 on the NSE. This decline followed the stock’s trading on an ex-split basis, reflecting the company’s decision to split shares in a 1:5 ratio. As per the company’s prior announcement, shareholders are entitled to receive five shares for every one they own, making this a significant corporate action that investors had been watching closely.

Key Details of HEG Ltd’s Stock Split

HEG Ltd had earlier informed the stock exchanges through a regulatory filing that October 18, 2024, would be the record date for the stock split. The split involves the division of each fully paid-up equity share of Rs 10 face value into five shares of Rs 2 face value. This is the first time HEG Ltd has taken such a step, aiming to enhance the liquidity and affordability of its shares for a broader range of investors.

In the regulatory filing, the company stated:
“We wish to inform you that the Company has fixed Friday, October 18, 2024, as the ‘Record Date’ for determining entitlement of Equity Shareholders for the purpose of sub-division / split of existing Equity Shares of the Company.”

Strong Performance Leading Up to the Stock Split

The decision to split the shares comes after a strong run in HEG Ltd’s share price. Over the past year, the stock has risen by an impressive 42%, with a 28.5% gain in 2024 alone. Over two years, HEG Ltd has more than doubled in value, offering a robust 123.6% return to investors. The stock split is likely to make the stock more accessible to smaller investors, further enhancing its appeal in the market.

Upcoming Board Meeting on Financial Results

In addition to the stock split, HEG Ltd announced an important update regarding its financial performance. The company has scheduled a board meeting on November 13, 2024, to review and approve its quarterly and half-yearly results for the period ending September 30, 2024. Investors will be closely monitoring these results, as they may provide further insights into the company’s operational performance and future prospects.

Despite the initial dip, the share price of HEG Ltd managed to recover some of its early losses after trading ex-split, reflecting investor confidence in the company’s long-term outlook.

Conclusion

HEG Ltd’s stock split marks a significant milestone for the company, providing a strong signal to the market about its performance and future potential. With its share price having surged over the past two years and key financial results on the horizon, the stock remains an important player to watch in the Indian markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.