Shares of Indian company Darshan Orna Ltd, an integrated manufacturer and wholesaler of jewelery industry, have given multibagger returns to its investors. The company’s shares have given a strong return of 600% in a year. Shares of Darshan Orna have increased from Rs 12 to Rs 88 in a year. Now the company is considering a stock split. The company on Monday informed the stock exchanges (BSE-NSE) that its board is going to meet on April 6 to approve and divest the shares of the company.
What did the company say?
Darshan Orna Limited in a filing said that as per SEBI regulations, the meeting of the Board of Directors of the company will be held on Wednesday, April 6, 2022 at 2:00 PM. The company will consider the distribution of shares and then the same will be approved.
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Company shares rise
Shares of Darshan Orna were down 4.96% at Rs 88.05 on BSE in afternoon trade on Monday. Over the past one year, the stock has given investors multibagger returns with a growth of nearly 600%. A year ago, on 22 March 2021, the company’s shares were at Rs 12.71, which has now increased to Rs 88.05. That is, if an investor had invested Rs 1 lakh in this stock a year ago, then today this amount would have increased to Rs 6.92 lakh.
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What is stock split?
Stock split means share split. Under a stock split, a company splits its shares. Market experts believe that usually when the stock of a company is very expensive, small investors shy away from investing in it. In such a situation, the company also resorts to stock split to attract small investors towards its shares and increase the demand in the market.
Stock split brings liquidity to the shares of the company. Small investors tend to move towards the stock. A decrease in the price also increases the chances of a stock rally. In the short term, there is a jump in the shares of the company. The number of shares of the company in the market increases. Please note that this does not affect the market cap of the company.