4 Stocks Turning Ex-Split in May 2025
4 Stocks Turning Ex-Split in May 2025 – In the world of stock investing, corporate actions like stock splits often draw considerable attention from investors. A stock split is a corporate action where a company divides its existing shares into multiple shares. While this doesn’t change the company’s overall market capitalization, it does lower the share price and increase the number of outstanding shares, making the stock more affordable and potentially more attractive to retail investors.
This May, four companies are set to go ex-split, meaning their shares will be split on or after their respective record dates. Let’s dive into the details of each company and what this means for investors.
What is a Stock Split and Why It Matters?
A stock split is a strategic decision taken by companies to improve stock liquidity. For example, if a company’s stock is trading at ₹1,000 per share and it does a 1:5 stock split, each share will now cost ₹200, and investors will own five shares for every one share they previously held.
Stock splits don’t affect a company’s fundamentals but can often lead to increased trading volumes and investor interest.
1. United Polyfab Gujarat Ltd. (UPGL)
- Record Date: May 2, 2025
- Split Ratio: 1:10 (Each ₹10 share splits into 10 shares of ₹1 each)
UPGL, an Ahmedabad-based textile firm, is known for its high-volume fabric and yarn production. With a monthly capacity of producing 1.5 million meters of fabric, the company caters to large-scale domestic and international demand. This stock split aims to enhance liquidity and attract smaller investors.
2. Info Edge (India) Ltd.
- Record Date: May 7, 2025
- Split Ratio: 1:5 (Each ₹10 share splits into 5 shares of ₹2 each)
Info Edge, the parent company behind Naukri, 99acres, Jeevansathi, and Shiksha, is a prominent internet-based services firm. This stock split is expected to improve affordability and increase retail participation, especially considering its relevance in India’s fast-growing digital economy.
3. Rajasthan Tube Manufacturing Co. Ltd.
- Record Date: May 8, 2025
- Split Ratio: 1:10 (Each ₹10 share splits into 10 shares of ₹1 each)
Established in 1985, Rajasthan Tube Manufacturing specializes in steel pipes and tubes. With a global footprint and strong emphasis on innovation, the stock split aligns with its goal of boosting shareholder value and improving stock accessibility.
4. Shantai Industries Ltd.
- Record Date: May 14, 2025
- Split Ratio: 1:5 (Each ₹10 share splits into 5 shares of ₹2 each)
Shantai Industries operates in the textile space with a strong focus on fabric and garment production. The company serves both Indian and global markets, and the split will make the stock more liquid and retail-friendly.
Key Financial Ratios (Pre-Split)
Here’s a snapshot of important financial metrics for these four companies:
| Company | Market Cap (₹ Cr) | P/E Ratio | EPS (₹) | Debt to Equity | ROE (%) |
|---|---|---|---|---|---|
| United Polyfab Gujarat | 122 | 15.2 | 8.11 | 0.65 | 14.5 |
| Info Edge (India) | 61,000+ | 51.8 | 72.38 | 0.00 | 12.8 |
| Rajasthan Tube Mfg. | 42 | 13.6 | 3.45 | 0.12 | 10.3 |
| Shantai Industries | 34 | 9.5 | 5.14 | 0.18 | 11.7 |
Why Should Investors Care About These Splits?
- Increased Liquidity: Lower share prices often result in higher trading volumes.
- Retail Investor Participation: Splits can attract retail investors who may have avoided higher-priced shares.
- Psychological Boost: Although the fundamentals remain unchanged, splits are sometimes perceived as a sign of management confidence.
It’s important to remember that while stock splits themselves do not make a stock more valuable, they can signal company growth, and in some cases, precede upward trends due to increased market interest.
Conclusion
These upcoming stock splits in May 2025 represent a strategic move by each company to democratize ownership, attract a broader investor base, and improve share liquidity. Whether you’re an existing shareholder or looking to invest, being aware of these key corporate actions can help you make informed decisions.
FAQs: Stock Splits in May 2025
Q1: What is a stock split?
A stock split is when a company divides its existing shares into multiple shares to make them more affordable for investors, without changing the overall value of the company.
Q2: Which stocks are turning ex-split in May 2025?
The four stocks going ex-split are United Polyfab Gujarat (May 2), Info Edge (May 7), Rajasthan Tube Manufacturing (May 8), and Shantai Industries (May 14).
Q3: How does a stock split affect my investment?
It doesn’t change the value of your total holding. You’ll own more shares at a lower price per share, but your overall investment value remains the same.
Q4: Is a stock split a good sign?
While it doesn’t guarantee performance, stock splits are often seen as a sign that the company is growing and wants to make its shares more accessible to investors.
Q5: Do stock splits affect dividends or earnings per share (EPS)?
Yes, the EPS and dividends per share are adjusted proportionally after a stock split, but the total dividend received remains the same.
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