About the Jubilant Foodworks Stock Split

The company, in a filing, informed of the change in the capital of the company by subdivision/split of the existing capital share of the company from a capital share having a par value of Rs. 10/- (ten rupees only) each, fully paid up in five (5) shares with a par value of Rs. 2/- (rupees two only) each fully
released, subject to the approval of the shareholders of the Company.

The ex date for the same is April 19 and the record date is April 20, 2022

How will the stock split affect the stock price?

As the name suggests, in a split, the number of shares increases according to the par value, but there is no change in the investment value or market capitalization. Say if previously the face value was Rs. 10 and the new face value is Rs. 5, the stock split occurred in a ratio of 1:2. Also, in case there is a change in the stock price in the stock split ratio, assuming that in the current case 1:5 stock split, the price will be reduced by 1/ 5 and on the split date or ex-split date when the stock adjusts to the corporate action, there will be a discounted price for shares of Jubilant Foodworks.

What does the Jubilant Foodworks stock split hold for investors?

Jubilant Foodworks is a QSR stock and in times to come, with increasing purchasing power of individuals and given their eating habits, the stock is likely to gain traction.

So for the invested community, while they have to make sure they get 5 times the stake in the scrip after the stock split, new investors or potential investors can get in there at a much cheaper rate.

Warning:

We have just compiled the information around the Jubilant Foodworks stock split and this story should in no way be construed as stock investment advice. Although one of the main reasons for a stock split is to attract new investors.

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