Remedium Lifecare, a pharmaceutical company, has informed exchanges that its board of directors has fixed a record date for the subdivision of equity shares. 

Remedium Lifecare Stock Split

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According to the company, the board has approved the subdivision of stock in the ratio of 5:1 i.e. an equity share of Rs 5 will be split into five equity shares of face of Re 1 each.

"Sub-division of Face Value of Equity Shares from Rs. 5/- each to Face Value of Re. 1/- each," the filing reads.

Remedium Lifecare Stock Split Record date

The company in the exchange filing said that the board has fixed February 23 as a record date for this corporate action.

The record date is important as it helps a company finalise the list of shareholders eligible for its corporate action like payment of dividends or stock split.

What is a Stock Split?

A stock split occurs when a company issues more shares to increase the stock's liquidity. As a result, the number of shares increases but the company’s total value is the same before and after a split.