Cadila Healthcare were trading higher by 2% at Rs 424 on the BSE after the stock turns ex-stock split from face value of Rs 5 to Re 1 each with effect from today.
The pharmaceutical company has fixed October 07, 2015 as the record date for the purpose of sub-division/stock split of 1 equity share of face value of Rs 5 each into 5 equity shares of the face value of Re 1 each.
Stock split is generally done when the shares of a firm goes up too high. The split helps the share price to come down thereby making it easier for retail investors to invest in the stock.
Thus far in 2015, the stock has outperformed the market by gaining 30% against 3% decline in the S&P BSE Sensex.
The trading volumes on the counter more than doubled with a combined 370,376 shares changed hands till 09:55 am, as compared to an average 200,000 shares that were traded daily in past two weeks before stock split.