In a strategic move aimed at enhancing market accessibility and improving stock liquidity, Sunrakshakk Industries India Ltd has announced a stock split in the ratio of 1:5. The decision was approved during the company’s board meeting held on September 3, 2025, and is expected to reshape the company’s equity structure while attracting a broader base of retail investors.
Key Highlights of the Stock Split Announcement
The board of directors has approved the sub-division of equity shares such that one fully paid-up equity share of face value Rs. 10 will be split into five equity shares of face value Rs. 2 each.
The move is subject to shareholder approval and necessary regulatory clearances under SEBI’s Listing Obligations and Disclosure Requirements.
The record date for the split will be announced following shareholder consent and will be communicated in due course.
Strategic Rationale Behind the Split
Enhanced Liquidity
By increasing the number of outstanding shares, the split is expected to improve trading volumes and liquidity in the stock market.
Lower face value per share makes the stock more affordable for retail investors, potentially increasing participation.
Broader Investor Base
The split is designed to make Sunrakshakk’s shares more accessible to small investors who may have been deterred by the higher price of a single share.
This democratization of ownership aligns with the company’s long-term vision of inclusive growth and market expansion.
Market Sentiment and Valuation
Historically, stock splits are perceived positively by the market, often leading to increased investor interest and upward momentum in share price.
The announcement comes on the back of strong performance, with the company reportedly delivering over 500 percent returns from its 52-week low.
Operational and Financial Context
Company Profile
Sunrakshakk Industries operates in the textiles processing and texturising segment, with a growing footprint in domestic and export markets.
The company has been actively restructuring its operations to improve efficiency and profitability, which has been reflected in its recent financial performance.
Recent Performance
The stock has been a multibagger over the past year, driven by improved margins, rising demand, and strategic cost control measures.
Analysts have noted a consistent uptick in quarterly earnings and a healthy order book, which supports the timing of the stock split.
Implications for Shareholders
No Change in Total Investment Value
Post-split, shareholders will hold five times the number of shares they previously owned, but the total value of their investment remains unchanged.
For example, a shareholder owning 100 shares of Rs. 10 face value will now own 500 shares of Rs. 2 face value.
Adjusted Market Price
The market price of the stock will adjust proportionally to reflect the split, ensuring that the overall market capitalization remains unaffected.
This adjustment is purely mathematical and does not impact the company’s fundamentals or valuation.
Trading and Settlement
Once the record date is finalized, the split shares will be credited to shareholders’ demat accounts automatically.
Investors are advised to monitor announcements from the company and stock exchanges to stay updated on timelines and procedural details.
Looking Ahead
The stock split by Sunrakshakk Industries signals a confident outlook and a proactive approach to shareholder engagement. As the company continues to build on its operational strengths and market positioning, the move is expected to catalyze further investor interest and reinforce its standing in the mid-cap segment.
Sources: Rediff MoneyWiz, DSIJ Intelligence, Economic Times
