Shriram Finance share price dips 6% as stock trades ex-date for 1:5 stock split | Stock Market News

Stock market today: Shriram Finance shares dropped as much as 6 per cent on Friday, January 10, as they turned ex-date for stock split in the ratio of 1:5. The company had also fixed January 10 as the record to determine the shareholder eligibility for 1:5 stock split.

Shriram Finance had on October 25 announced that its board had approved the sub-division of one fully paid equity share of the face value of ₹10 each held by members of the company into five fully paid equity shares of the face value of ₹2 each, subject to the approval of company members through postal ballot.

The company later in a filing on December 23 intimated January 10 as the record date for the said stock split. Thus to be eligible for the stock split, investors had to purchase shares of Shriram Finance on January 9, given the T+1 settlement cycle that stock exchanges follow.

“In furtherance to our earlier intimations dated October 25, 2024, November 20, 2024, December 20, 2024 on the captioned subject and pursuant to approval accorded by the Shareholders of Shriram Finance Limited (“the Company”) through Postal Ballot on December 20, 2024, for the Sub-division/Split of face value of Equity Shares of the Company and Regulation 42 of the Listing Regulations, the Company has fixed Friday, January 10, 2025 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of Sub-division/Split of face value of Equity Shares of the Company,” the exchange filing started.

This is the first-ever stock split undertaken by the company.

Shriram Finance Stock Price Impact

As the Nifty 50 stock traded ex-split in the ratio of 1:5, it tanked 6 per cent to the day’s low of Rs528.70 on the BSE. Shiram Finance share price had opened at ₹569.95, slightly higher than its previous close of ₹562.55 apiece. But soon the stock gave up gains and tumbled.

Shriram Finance share price has fared poorly in the short term, falling 13 per cent in the last one month, 20 per cent in the last three months and 3 per cent in the last six months. In the last one year, however, the stock is up 25 per cent.

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