Eicher Motors Ltd Splits

A stock split is a corporate action in which a company like Eicher Motors 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 Eicher Motors 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 Eicher Motors Ltd and other stocks is effortless, so you’re always in sync with market moves.

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.

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.

Suppose Eicher Motors 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 Eicher Motors 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.

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).

A stock split isn’t just about affordability—it’s often a sign of strength. For Eicher Motors 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.

Tracking stock splits is simple with Pocketful:

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

• 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% .

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

For companies like Eicher Motors 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.