0 likes | 1 Views
Stock splits are one of the common strategies deployed by corporations to make their shares more accessible and attractive to investors. One recent example is Vedanta Limited, which will split into separate entities for aluminium, oil and gas, power, and iron & steel. In a strategic move that reflects its focused growth and commitment to shareholder value creation, the company has announced a major Vedanta demerger plan, expected to be completed by September 30, 2025
E N D
ALL YOU NEED TO KNOW ABOUT STOCK SPLIT, WITH VEDANTA THE LATEST ON THE LIST
Stock splits are one of the common strategies deployed by corporations to make their shares more accessible and attractive to investors. One recent example is Vedanta Limited, which will split into separate entities for aluminium, oil and gas, power, and iron & steel. In a strategic move that reflects its focused growth and commitment to shareholder value creation, the company has announced a major Vedanta demerger plan, expected to be completed by September 30, 2025
WHAT IS A STOCK SPLIT? A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing additional shares to existing shareholders. This action reduces the stock price proportionately while improving the company’s market capitalisation.
WHAT ARE THE KINDS OF STOCK SPLITS? Forward Stock Split: It is one of the most common types, which increases the number of shares and reduces the price per share proportionately. This stock split maintains the company’s overall market capitalisation while increasing the availability of shares in the market.
FINAL WORDS Stock splits, whether forward or reverse, significantly impact investor participation and market dynamics. More companies are considering restructuring options as a way to attract a broader investor base and support financial inclusion. Vedanta demerger will set the benchmarks; it is expected to unlock shareholder value, increase global competitiveness, and reduce India’s import dependence in key sectors like energy and metals.