New Delhi. A smallcap company has announced to split its shares into 10 pieces. This means that now those who have 1 share will see 10 shares in their account. But this will not affect the amount they have. Split stock definitely affects the price of shares but due to increase in the number of shares, even if the price of shares decreases, it does not affect the investors.

For example, if a share is worth Rs 400, if it is split in the ratio of 10:1, then the price of one share will become Rs 40, but the investor's investment will still remain Rs 400, only the number of shares will become 1:10. Companies usually do stock split because they feel that the market value of their shares has increased and due to this, fewer investors are coming. They reduce the price of shares in this way to attract more investors.

Status of Kamdhenu Limited Shares
Kamdhenu Limited shares have caused losses to investors in the short term. However, in a span of 5 years, this stock has increased by about 500 percent. On December 13, 2019, the price of this stock was Rs 87.50 on NSE but now the same stock is being sold for Rs 498.80. This is a growth of more than 470 percent. But in the last 6 months, it has fallen by 9.19 percent and 5 percent in 1 week. The one-year return of the stock is 80 percent.

To take advantage of the record date
stock split, new investors will have to invest in this stock before January 7. The company has fixed the record date on the 8th. Usually the ex-date is one day before the record date. Only those who buy shares before the ex-date get the benefit of dividend, stock split or bonus shares. However, now the ex-date and record date are also kept on the same day. But if you want to be a part of the stock split, then to be safe, buy the shares 2 days before the record date.

What does the company do?
Kamdhenu Limited's main business is to manufacture and sell steel products. For example, TMT bars, structural steel and related building materials are the products of Kamdhenu Limited. The company sells its products under the Kamdhenu brand. According to the information given on the company's website, Kamdhenu Limited has been in the steel manufacturing business since 1995. Apart from this, the company also entered the decorative paints business in 2008.