Share India Securities: Stock Announces Record Date for First-Ever 1:5 Stock Split

Share India’s Legacy in the Capital Market

The Share India group has been a prominent player in the capital market for over 30 years. With a vast network of 293 branches and franchises as of March 31, 2024, they have established a strong pan-India presence. Their primary activities include strategy-based proprietary trading and high-frequency trading. Additionally, the group offers broking services to high-net-worth individuals, foreign portfolio investors, and high-frequency traders.

Diversifying Revenue Streams

In recent years, Share India has expanded its services to include merchant banking, lending, and the distribution of financial products. This diversification has bolstered their earnings. They have positioned themselves as one of the largest players in proprietary trading, capturing a market share of 1.44% in the cash segment and 1.83% in the futures and options (F&O) segment for fiscal 2024.

Stock Split Record Date

Share India Securities recently announced a record date for the sub-division of equity shares. The record date is set for June 27, 2024 (Thursday). This date will determine the shareholders eligible for the stock split. The stock split ratio is 1:5, meaning that for every one share of Share India Securities held by an investor on the record date, they will receive five shares.

Check Stock Splits

Financial Performance and Capitalisation

On the capitalization front, as of March 31, 2024, Share India’s consolidated net worth stood at Rs 1,747 crore, with a gearing ratio of 0.22 times. This is a significant improvement from March 31, 2022, where the figures were Rs 447 crore and a gearing ratio of 0.42 times. The group completed a rights issue of Rs 800 crore in fiscal 2024, converting Rs 544 crore in the same year, with the remaining Rs 230 crore expected to be converted in the first half of fiscal 2025.

Proprietary trading activities constitute 70% of the group’s income. In fiscal 2024, the group reported a profit after tax of Rs 426 crore and a total income of Rs 1,483 crore, up from Rs 330 crore and Rs 1,099 crore, respectively, in fiscal 2022. The cost-to-income ratio also improved, dropping to 63% in fiscal 2024 from the historical levels of 70-80%. Maintaining this cost-to-income ratio while diversifying revenue will be crucial for the group’s future ratings.

Shareholding Pattern

As of the quarter ending March 2024, promoters held 53.19% of the shares, the highest since March 2022. This is an increase from 49.89% in December 2023. Foreign Institutional Investors (FIIs) also increased their stake to 2.68%, marking the highest level to date.

Current Stock Performance

The stock is currently trading at Rs 1,516, with a 52-week high of Rs 2,026.40, which was reached on February 22, 2024.

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.