2 underperforming smallcap stocks to consider stock split next week: Do you own them?

Even as Indian equities continued to trade lower tracking global market sell-off post the Fed's cautious outlook on future rate cuts in Thursday's session, stock-specific action is also witnessed in some of the counters.

Likewise, two of the smallcap companies namely IOL Chemicals and Pharmaceuticals and Coastal Corporation saw traction as both of them are set to mull stock split next week.

From the pharma space, IOL Chemicals traded with sharp gains of over 8 per cent at Rs 439, while at the day's high it scaled levels of Rs 443.9 per share on the BSE. The company in its filing post-market hours said, "we wish to inform you that the meeting of the Board of Directors is scheduled to be held on Friday, the 27th December 2024 inter-alia to consider and approve the alteration in the share capital of the Company by sub-division / split of existing equity shares having face value of Rs. 10/- each, fully paid up, as may be determined by the Board of Directors."

So, accordingly, the outcome on the likely share split at the company will be out next Friday.

The trading window for dealing in securities of the Company will be closed from 19th December 2024 till 29th December 2024, added the filing.

IOL Chemicals is an underperforming scrip with its 1-year return at -5 per cent. Nevertheless, the stock in the past one month has gained over 25 per cent.

Similarly, Coastal Corporation- another smallcap entity also is set to consider share/ stock split on December 23. This is another underperforming scrip from the seafood space.

" a meeting of the Board of Directors of the Company will be held on Monday, December 23,2024, inter-alia, to consider and approve the alteration in the share capital of the Company by sub-division/split of existing equity shares having face value of Rs.10/- each, fully paid-up, as may be determined by the Board of Directors," said the company's filing with the exchanges.

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.