IEL Ltd, a shining star in the world of stocks, has seen its returns bloom spectacularly, with gains of an astounding 1,785% over the past five years. This week, the spotlight is firmly on IEL as it prepares to trade ex-split on September 25, implementing a 1:10 stock split. This move means that IEL shares will become more affordable on the stock exchanges.
Closing out the previous week, IEL shares were valued at Rs 152.85 apiece, marking a 2.52% increase on the Bombay Stock Exchange (BSE). The company’s market capitalization stood at a commendable Rs 51.02 crore.
The upcoming 1:10 stock split is scheduled for September 25, with the record date set for this purpose. In simple terms, for every one existing equity share with a face value of Rs 10 each, there will be a subdivision into ten equity shares, each with a face value of Re 1 each.
Commonly, listed companies opt for a stock split to divide their existing shares into smaller units. This maneuver enhances liquidity by reducing share sizes. Importantly, the face value of the shares decreases in proportion to the split ratio, but it doesn’t impact the company’s share capital and reserves. Consequently, a stock split makes the company’s shares more accessible to retail investors.
IEL’s motivation for the stock split is akin to expanding its shareholder base and enhancing the liquidity of its Equity Shares. This move aims to encourage greater participation from retail investors in the company’s shares.
Over the past five years, IEL’s shares have witnessed a remarkable upswing, surging by an impressive 1,784.71% from September 2018 to the present day. In late September 2018, the stock was trading at a modest level of nearly Rs 8.
Presently, the stock’s 52-week high and low are at Rs 205.90 apiece and Rs 61.86 apiece, respectively. Year-to-date, the stock has soared by over 50%, and in the past six months, it has recorded an impressive upside of nearly 94% on BSE.
Founded in 1990, IEL primarily engages in the development, production, and engineering of industrial electronics. Its forte lies in creating modern, high-quality electronic measuring and protection devices, as well as process monitoring and control devices and systems.
According to Trendlyne data, the stock’s Relative Strength Index (RSI) and Money Flow Index (MFI) currently stand in the mid-range at 44.1 and 65.7, respectively. Its 1-year Beta is a low 0.52, indicating minimal volatility. However, the stock’s price-to-book ratio is relatively high in the industry at 52.8, while the trailing twelve months (TTM) PE ratio remains below the industry median at 22.4.
Investors and market observers will undoubtedly keep a close watch on IEL as it approaches this significant stock split, expecting more excitement and potential growth in the days to come.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct thorough research and consult with financial experts before making investment decisions.
