The company recently announced a stock split in a ratio of 5: 2, effectively the face value of its equity share was effectively Rs. Reduced by 2. The number of remaining stocks increases when reducing the proportional face value of the stock, which will make the stock more affordable and increase liquidity without changing the company’s overall market capitalization.
Stock exchanges follow the T +1 settlement cycle, so investors should buy at least one trading day before the record date to qualify.
This means that today is a crucial cut-day Fay Day for buying shares of God Information Technology to qualify for division. Any purchase tomorrow or later will not be eligible for investors, as it will be compromised after a trade record date.
Why is it important to investors?
Stock split often attracts fresh retail partnerships, as reduced facial value makes the stock more accessible to investors’ huge support. While the division itself does not affect the company’s fundamentals, it usually improves fluid in the counter and can help increase the volume of trade.
With the division of the stock, companies aim to expand their investors’ support and provide shareholders to the elevated value through greater participation in their equity.
About God Information Technology
Dev Information Technology is the provider of a global IT services that focus on digital change and innovation. Known for delivering strong solutions, the company constantly emphasizes innovation, quality, streamlined processes and technical skills.
(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)
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