Canara Bank Share Price Highlights : Canara Bank Ltd saw a 5% increase in Wednesday’s trading session following a positive development: the company’s shares underwent a split, resulting in shares with a lower face value. Today marked both the ex-date and the record date for this stock split. Previously, Canara Bank’s fully paid-up shares had a face value of Rs 10 each. Now, they have been divided into five fully paid-up shares, each with a face value of Rs 2. This change marks the ex-date for the corporate action, signaling a new phase for the company’s shares.
Canara Bank Share Price
Adjusting for the split, the stock stood at Rs 118.40 on BSE, up 4.54 per cent. The move is seen boosting liquidity on the counter, as it made it affordable for retail investors to buy Canara Bank shares.
It’s great to see more people getting involved in investing, especially in the retail sector. As of March 31st, a total of 739,996 individual investors, each owning shares worth up to Rs 2 lakh, held a 6 per cent stake in the bank. Alongside them, there were 337 High Net Worth Individuals (HNIs), including well-known investor Rekha Rakesh Jhunjhunwala, who collectively owned 4.65 per cent of the PSU lender.
Recently, the bank increased its number of shares from 181,41,30,252 to 907,06,51,260 through a stock split. In a stock split, existing shares are divided into smaller units, but this doesn’t affect the overall share capital. It’s important to note that this is different from bonus shares, where existing shareholders receive additional shares based on their current holdings.
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Bonus shares are a neat way for companies to reward their shareholders without dipping into cash reserves. Instead of splitting stocks, bonus shares are handed out, drawing from the company’s earnings. This move shifts money from reserves to share capital by issuing new shares. It’s a way to say ‘thanks’ to investors while boosting the value of their holdings.
JM Financial anticipates that Canara Bank will continue to experience a positive rerating in the foreseeable future, thanks to its consistent maintenance of a stable net interest margin, ongoing reduction in credit costs, and sustained return on assets of 1 per cent over multiple quarters.
