Shares of Vaibhav Global hit an all-time high in Friday's trade after they rallied 19 per cent to Rs 1,037.90 on the BSE as investors lapped up the stock after it turned ex-split. The company has split the stock in the ratio of 1:5, i.e. equity share of face value Rs 10 has been split into five shares of face value Rs 2.
The company has fixed Monday, May 10, 2021, as the record date for determining the eligibility of shareholders for split/sub-division of equity shares. The board of directors of the company at its meeting held on March 22, 2021, had approved the sub-division/split to increase the liquidity in the shares and bring down the company’s share price. It allows retail investors to own the shares at a lower price.
“In order to improve the liquidity of the company's equity shares in the stock markets and to make them more affordable for the small retail investors, it is proposed to subdivide/split equity shares of the face value of Rs 10 each into 5 equity shares of the face value of Rs 2 each,” Vaibhav Global said on the rationale behind the split.
In the past three months, the stock has outperformed the market by zooming 90 per cent as against a 3 per cent decline in the S&P BSE Sensex. In the six months, it has rallied 160 per cent, while in the last one year it has soared 425 per cent. In comparison, the benchmark index has gained 18 per cent and 57 per cent, respectively, during the same period.
Vaibhav Global (VGL) is an E-retailer of fashion jewellery, accessories, and lifestyle products in developed markets with direct access to over 100 million households (FTE) through its TV home shopping networks – Shop LC in the US and Shop TJC in the UK. VGL’s TV channels reach customers directly 24x7 on all the major cable, satellite and DTH platforms – Dish TV, DirecTV, Comcast, Verizon Fios, Spectrum, AT&T, Sky, Virgin, Freeview, Freesat etc. The company’s e-commerce websites www.shoplc.com in the US and www.tjc.co.uk in the UK complement TV coverage and diversify customer engagement.
At 11:32 am, the stock was trading 16 per cent higher at Rs 1,014 on the BSE as against a 0.68 per cent gain in the S&P BSE Sensex. The trading volumes on the counter jumped over 10-fold from its pre-stock-split level. A combined 650,000 equity shares had changed hands on the counter on the NSE and BSE so far.