BEML Share Price Declines As Stock Trades Ex-Split
The shares of BEML Ltd. have fallen 50% on Monday as the stock begins trading adjusted for its stock split announced earlier. The PSU had earlier announced a 1:2 stock split, which means that one share with a face value of Rs 10, will be split into two shares of Rs 5 each.
BEML said the stock split is being undertaken to comply with government guidelines on capital restructuring, encourage wider participation of small investors, and enhance liquidity in the market.
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly. While the number of shares increases, the total investment value…
