10 shares for 1? Major stock splits and bonuses to watch out for this week

The second week of January will see a flurry of corporate actions that could reshape portfolios and reward investors. From stock splits to bonus issues and even a major demerger, key companies are gearing up to deliver significant changes. 

Several notable names, including Shriram Finance and Julien Agro Infratech, have lined up corporate actions that aim to enhance liquidity and shareholder value. According to data from the BSE, here’s what’s on the radar:

Stock Splits

• AA Plus Tradelink: Announcing a 1:10 stock split, shareholders will receive 10 shares for every share held post-split. The record date is January 8, 2025.
• Kamdhenu: This split reduces the face value of shares from Rs.10 to Rs.1, significantly increasing liquidity. The ex-date is also January 8, 2025.
• Julien Agro Infratech: Shares will be split from Rs.10 to Rs.5 per share on January 8, making the stock more accessible to retail investors.
• Shriram Finance: A 1:5 stock split is scheduled for January 10, reducing the price per share and attracting more investors.

Bonus Issues

• Algoquant Fintech: Shareholders will receive 1 bonus share for every 2 held. The record date is January 8, 2025.
• Padam Cotton Yarns: A 1:1 bonus issue ensures shareholders double their holdings, also effective January 8.

Dividends

VTM Limited: An interim dividend of Rs.0.25 per share will be distributed to shareholders on record as of the designated date.

Major Corporate Action: ITC Demerger

One of the week’s most anticipated events is ITC Limited’s demerger of its hotel business, effective January 6, 2025. Eligible shareholders will receive 1 share of ITC Hotels for every 10 ITC shares held.

Post-demerger, ITC will retain a 40% stake in the hotel business, while the remaining 60% will go to shareholders. ITC Hotels is expected to list in February, positioning itself as a standalone entity.