MK Proteins, a notable player in the food oil production industry, has recently made an announcement regarding a stock split. The company’s shares, which currently have a face value of ₹10 each, will be divided into ten shares with a face value of ₹1 each. It’s important to clarify that the face value of a share, often referred to as the nominal value, may differ from its market value.
The significance of face value becomes evident when determining dividends and during stock splits. The company has set a record date for the stock split, which is November 10, 2023. This implies that shareholders must possess these shares in their accounts before this date to be eligible for the split.
A stock split directly translates to the division of shares, where a company distributes its shares to make them more accessible to investors, especially retail investors, when the price per share becomes significantly high. It is a strategic move by companies to attract and encourage smaller investors to participate in the market.
The stock split does not affect the overall value of an investment, as splitting one share into two shares halves the face value of each share. In the case of MK Proteins, one share will transform into ten after this decision.
About MK Proteins:
MK Proteins Limited is the owner and operator of a food oil production plant. The company is involved in the production and refinement of rice bran oil, canola oil, soybean oil, and sunflower oil. MK Proteins serves customers in India.
In conclusion, MK Proteins’ decision to split its shares is a strategic move to make its shares more accessible to a wider range of investors, particularly those with smaller investments. This development reflects the company’s commitment to fostering a diverse shareholder base and enhancing its market presence. Shareholders should take note of the record date to ensure their eligibility for the stock split.
