Cochin Shipyard Ltd saw its share price rally to new highs on Wednesday after the company fixed a record date for its recently approved stock split. According to the exchange disclosure, shareholders as of January 10 will be eligible to receive the split equity shares of the company.
Cochin Shipyard has fixed January 10 as the record date for its recently approved two-for-one stock split. Each existing share with a face value of Rs. 10 will split into two shares of Rs. 5 each. This makes the company’s shares eligible for trading on an ex-split basis on Wednesday.
Meanwhile, Grasim Industries will trade ex-rights as the record date of January 10 has been set for its Rs. 3,999.80 crore rights issue launched at a price of Rs. 1,812 per share.
Sharanam Infraproject and Trading also announced January 10 as the record date for its rights issue of equity shares. Investors must hold the companies’ shares before the record date to be eligible for the stock split and rights offerings.
The shipbuilder had proposed conducting a two-for-one stock split last month, with each existing share of face value Rs. 10 to split into two shares of face value Rs. 5 each. Post shareholder approval, the record date was set this week to determine eligibility for the stock split. Investors welcomed the news, sending the stock 8% higher during early trade on Wednesday.
At its peak, Cochin Shipyard shares touched Rs. 722.80, surpassing the previous lifetime high. Strong momentum saw trading volumes surge to over 2.8 times the stock’s 30-day average. The buying activity indicated positive investor sentiment towards the split and optimism regarding the company’s growth outlook.
Cochin Shipyard has emerged as a major player in the domestic shipbuilding sector with orders from both government and private entities. In the latest quarter, order book stood at a robust Rs. 29,900 crore with strong visibility for the coming years. With the defence and maritime sector gaining policy support, demand for the shipbuilder’s services is projected to remain robust.
The stock split is aimed at boosting liquidity and making the shares accessible to smaller investors. The lower face value post split could aid trading activity while not diluting any shareholder holdings. Of the five analysts tracking the stock, 60% maintain a ‘Buy’ with an average 12-month price target suggesting further upside.
Bullish momentum in Cochin Shipyard shares is thus likely to continue as investors bet on the company’s differentiated order book and leadership in the Indian shipbuilding space. While macro volatility remains a risk, the stock split signals management’s confidence in ramping up operations and shareholder returns over the long haul.
