Sapphire Foods announces record date for 1:5 stock split. Shares surge 4%

KFC and Pizza Hut operator Sapphire Foods on Tuesday announced September 5 as the record date for the purpose of its 1:5 stock split, following which the stock surged 4.4% on BSE to its day’s high of Rs 1,628.25.

“This is to inform you that the Company has fixed Thursday, 5th September 2024 as the 'record date' for determining entitlement of Equity Shareholders for the purpose of subdivision/split of existing Equity Shares of the Company from 1 equity share having face value of Rs. 10/- each fully paid up, into 5 equity shares having face value of Rs. 2/- each fully paid-up, ranking pari-passu in all respects,” said the company in a filing to the exchanges.

This means that the shareholders whose names appear in the company's database on the record date are eligible for the said stock split. Shareholders who buy the stock at least one day before the ex-date are eligible for dividends as settlement happens the next day. Those buying the stock on the ex-date are not eligible for dividends.


A 1:5 stock split means that one company stock with a face value of Rs 10 per equity share will now be subdivided into five equal shares having a face value of Rs 2 per share.

This will be the first-ever instance of Sapphire Foods proceeding with the sub-division of its stock.

Also read: Rs 8,000 cr Payout! Hind Zinc announces 2nd interim dividend of Rs 19/share. Check record date

The company had previously stated that they are carrying out the stock split in order to improve liquidity of the equity shares of the company in the capital markets which will help in widening the shareholder base and make it more affordable for retail investors.

In the last one year, the shares of Sapphire Foods have gone up by 17.7% while in the current year so far, the stock has surged by 11%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)