pocketful Page

Home

Calculator

Calculators

search

Search

whatsapp

Whatsapp

What is a Stock Split?

A stock split is a corporate action in which a company like Asi Industries Ltd divides its existing shares into multiple shares, reducing the price per share without changing the total market capitalization.

A stock split makes shares more affordable, attracts new investors, and boosts liquidity in the market—all while keeping the overall market capitalization intact.

Example: If Asi Industries Ltd announces a 2-for-1 stock split, and you own 100 shares priced at ₹200 each, after the split, you’ll own 200 shares priced at ₹100 each. Your total value remains the same - but now more affordable for new buyers!

At Pocketful, tracking stock splits for Asi Industries Ltd and other stocks is effortless, so you’re always in sync with market moves.

Key Features of Stock Splits

  1. No Change in Value: The total value of holdings remains the same despite the split.
  2. Increased Liquidity: More shares lead to higher trading volume and liquidity.
  3. Improved Affordability: The reduced price per share attracts retail investors.
  4. Psychological Impact: Lower prices may create the perception of affordability, boosting investor interest.

Key Dates Related to Stock Splits

  1. Announcement Date: The date when the company declares the stock split.
  2. Record Date: The cut-off date to determine eligible shareholders for the split.
  3. Ex-Split Date: The date when the stock starts trading at the adjusted price.
  4. Effective Date: The date on which new shares are credited to shareholders.

Example of a Stock Split

Suppose Asi Industries Ltd announces a 2-for-1 stock split on January 1, 2024. The key dates are:

  • Announcement Date: January 1, 2024
  • Record Date: January 10, 2024
  • Ex-Split Date: January 11, 2024
  • Effective Date: January 15, 2024

If an investor holds 100 shares of Asi Industries Ltd priced at ₹200 per share, after the 2-for-1 split, they will hold 200 shares priced at ₹100 per share. The total investment value remains ₹20,000.

Types of Stock Splits

  1. Forward Stock Split: Increases the number of shares, reducing the price per share (e.g., 2-for-1 or 3-for-1).
  2. Reverse Stock Split: Decreases the number of shares, raising the price per share (e.g., 1-for-2 or 1-for-3).

Why Does Asi Industries Ltd Announce Stock Splits?

A stock split isn’t just about affordability—it’s often a sign of strength. For Asi Industries Ltd, splits typically:

  1. Increased Accessibility: Lower share prices make stocks affordable for more investors, particularly retail investors.
  2. Higher Liquidity: More shares in circulation improve trading volumes.
  3. Positive Market Perception: Often viewed as a sign of strong performance and growth potential.
  4. Portfolio Adjustment Opportunities: Investors can diversify holdings with split-adjusted shares.

How Can I Track Stock Splits of Asi Industries Ltd on Pocketful?

Tracking stock splits is simple with Pocketful:

  1. Visit the Corporate Actions section of Asi Industries Ltd.
  2. Select the Stock Splits tab to view historical and upcoming splits.

Tax Implications of Stock Splits in India

  • No Tax on Split Shares: Stock splits are not taxed at the time of issuance.
  • Cost Adjustments: The cost per share is adjusted proportionally to the split.
  • Capital Gains Tax: Gains from selling split shares are taxed based on the adjusted purchase price and holding period:
    • Long-Term Gains (holding > 1 year): Taxed at 12.5% if gains exceed ₹1,25,000 .
    • Short-Term Gains (holding ≤ 1 year): Taxed at 20% .

Conclusion

Stock splits are more than just numbers—they’re milestones. They reflect confidence, accessibility, and expansion.

For companies like Asi Industries Ltd, a stock split often marks a new phase of growth—and for investors, it’s an opportunity to capitalize on affordability, liquidity, and long-term gains.

With Pocketful, staying ahead of stock splits is effortless. Track announcements, analyze impacts, and invest smarter—because when companies grow, so should your investments.

FAQs

Does a stock split by Asi Industries Ltd increase my investment value?

No, stock splits increase the number of shares but do not change the total value of your investment in Asi Industries Ltd.

Why do companies like Asi Industries Ltd announce stock splits?

Companies announce splits to make shares more affordable, improve liquidity, and attract more investors.

How is the share price of Asi Industries Ltd affected after a split?

The price per share decreases in proportion to the split ratio, maintaining the same overall value.

Can I sell shares immediately after a stock split?

Yes, once the split takes effect and shares are credited, they can be sold.

How do I check stock splits of Asi Industries Ltd on Pocketful?

Simply go to the Corporate Actions section, and check the Stock Splits tab for details.

Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548):

The SEBI Registration No. allotted to us is INZ000313732.
NSE Member Code: 90326| BSE Member Code: 6808| MCX Member Code: 57120
DP CDSL: 12099800

Compliance Officer : Mr. Randhir Kumar Chaudhari
Tel no: 011- 49022222 / 011-49022277
Email: randhir@pocketful.in

Address/Correspondence Address: C- 3, Ground Floor, Okhla Industrial Area, Phase - 1, New Delhi - 110020

For any complaints, drop us an email at legal@pocketful.in

Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID.

Smart Online Dispute Resolution|Link To Circular|Procedures and Policies|Broker Investor Charter|DP Investor Charter

Benefits: Effective Communication, Speedy redressal of the grievances.

Please ensure you carefully read the Risk Disclosure Document as prescribed by SEBI and our Terms of Use and Privacy Policy.
The brand name Pocketful and logo is in process of trademarks registration. The cost-effective brokerage plans make Pocketful a trustworthy and reliable online stock broker. Available on both the web and mobile, it offers unmatched convenience to traders. If you are considering opening......

Read More