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News Topical, Digital Desk : Stock Split News: Shares of Mrs. Bector Foods Specialities Ltd. will be in focus on Friday, December 12th . The company's stock is trading adjusted today following its previously announced stock split . During its quarterly earnings announcement, the company announced that it would split one share with a face value of ₹ 10 into five shares with a face value of ₹ 2 each. The company set Friday, December 12th as the record date for this stock split . This means that only shareholders holding Mrs. Bector Foods shares in their demat accounts as of Thursday's market close will be eligible for the stock split . Investors who purchase the company's shares during today's trading session will not be able to take advantage of this split . How many stocks will the split be? To understand this stock split in simple terms, for example, if an investor had 50 shares on Thursday with a face value of ₹ 10 each, after a 1:5 split , they will become 250 shares with a face value of ₹ 2 per share. The share price will adjust proportionately , although the total investment value will remain the same. This is the first time Mrs. Bector Foods has announced a stock split or any other corporate action ( other than a dividend ) for its shareholders . Why is a stock split ? Companies generally conduct a stock split to make the stock more accessible to small investors by reducing the share price and to expand the investor base, without affecting the company's total market value. At the end of the September quarter, promoters held a 49% stake in Mrs. Bector Foods . Meanwhile, domestic mutual funds held 19.9%, and approximately 90,000 retail investors (with authorized capital of up to ₹ 2 lakh) held 10.2%. On Thursday, the company's shares rose 1.3% to ₹1,000 .
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