MOS Utility stock split record date on August 8, last day to buy shares today. Do you own?

Shares of MOS Utility may remain in focus today as the company prepares to undergo a stock split in the ratio of 1:5, changing the face value of each share from Rs 10 to Rs 2, for which Friday, August 8, has been set as the record date.

This means Thursday, August 7, is the last day for investors to buy shares and be eligible for the benefit.

A stock split is a corporate action where the company increases the number of its outstanding shares by issuing more shares to current shareholders. While the total market capitalization remains the same, each share’s face value is reduced proportionally, improving stock liquidity and making it more accessible to retail investors.

In this case, each share of MOS Utility with a face value of Rs 10 will be split into five shares with a face value of Rs 2 each.

The stock split aims to encourage greater retail participation and improve trading volumes in the counter. The move also reflects the company’s confidence in its long-term growth trajectory. With the stock currently trading at relatively higher levels, the split is expected to make it more affordable to a broader pool of investors.

Stock splits typically indicate management’s optimism and may result in higher retail interest in the short term. However, they also caution that a split does not change the underlying fundamentals of the company, and investors must assess the company’s financials before making investment decisions.As the stock split becomes effective post-record date, shareholders on record as of August 8 will see their existing holdings adjusted accordingly. For example, an investor holding 100 shares of face value Rs 10 will now hold 500 shares of face value Rs 2 each, with no change in total investment value.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)