Up over 600% return in 4 years! This Jhunjhunwala stock announces record date for stock split

Shares of Canara Bank Ltd rebounded from early cuts on Friday to trade mostly flat after the state-run lender announced the record date for stock split. The company had announced a stock split in February 2024, subject to all necessary approvals from shareholders and authorities.

This is to inform you that the bank has fixed Wednesday, May 15, 2024 as the record date for determining entitlement of equity shareholders for the purpose of sub division/split of existing equity shares of the bank, said the company in the exchange filing with the bourses on Friday.

Shares of Canara Bank will be divided into 1:5 ratio, which means that all equity shares with a face value of Rs 10 each shall be divided into five equity shares of Rs 2 each, ranking pari-passu in all respects, the regulatory filing said further. Stock split is a corporate action, undertaken by companies, in order to improve the liquidity of its shares

Earlier this week, Fitch Ratings affirmed the long-term Issuer Default Rating (IDR) of Canara Bank at 'BBB-' and said the outlook looks stable on Tuesday.

Shares of Canara Bank dropped more than 3.55 per cent to Rs 562.90 on Friday, before recovering to Rs 580.45 on with a total market capitalization of more than Rs 1.05 lakh crore. The stock had settled at Rs 583.55 in the previous trading session on Thursday.

Shares of Canara Bank have surged more than 615 per cent in the last four years from its price around Rs 81-odd levels on April 24, 2020. The stock has almost doubled investors wealth in the last one year, while the stock is up 31 per cent in the year 2024 so far. The stock has corrected about 6.5 per cent from its 52-week highs at Rs 620, hit earlier this month.

Seasoned Dalal Street Investor Rekha Rakesh Jhunjhunwala owned 2,63,17,400 equity shares, or 1.45 per cent stake, in the lender, amounting to Rs 1,524.3 crore on Friday. However, the marquee investor sold 1,12,80,200 equity shares of the lender during the January-December period.