1:5 Stock Split: A small-cap stock is set to remain in focus as it approaches its stock split record date next week.
The company has fixed June 12, 2026, as the record date to identify shareholders eligible for the stock split.
The company is in discussion is Mobavenue Ai Tech. Under the approved corporate action, one equity share with a face value of Rs 10 will be split into five equity shares with a face value of Rs 2 each.
1:5 Stock split
In an exchange filing, “we wish to inform you that the Board of Directors of the Company, by way of Circular Resolution, today has considered and approved Friday, June 12, 2026 as the “Record Date” for the purpose of determining the members eligible for the sub-division/split of 1 (one) existing fully paid-up equity share of face value of ₹10/- (Rupees Ten only) each into 5 (five) fully paid-up equity shares of face value of ₹2/- (Rupees Two only) each.
A stock split is like exchanging one large note for several smaller notes. For example, if you have one Rs 500 note and exchange it for five Rs 100 notes, the number of notes increases, but the total value remains Rs 500.
For those unaware, a stock split is a corporate action that increases the number of shares in circulation, while the face value and market price of each share is decreased in proportion. The total value of an investor’s holding does not change.
In simple terms, if an investor owns one share before the split, he will have five shares after the split. But the total value of his investment will remain the same.
Only investors whose names appear in the company’s records on the record date will receive the benefit of the stock split.
Final dividend proposed
The company has also recommended a final dividend of Rs 0.50 per equity share of face value Rs 10 each for the financial year 2025-26.
The dividend proposal is subject to shareholders’ approval at the company’s upcoming 16th Annual General Meeting (AGM).
Strong Q4 performance
The company reported a strong set of numbers for the March quarter. Revenue from operations rose 41.9 per cent year-on-year to Rs 6,262 lakh in Q4 FY26, compared with Rs 4,413 lakh in the same period last year.
EBITDA increased 67.5 per cent to Rs 1,334 lakh from Rs 797 lakh a year ago. EBITDA margin improved by 320 basis points to 21.3 per cent from 18.1 per cent.
Profit after tax (PAT) climbed 56.6 per cent year-on-year to Rs 844 lakh, while PAT margin expanded to 13.5 per cent from 12.2 per cent in the year-ago quarter.
FY26 earnings jump
For the full financial year, revenue from operations surged to Rs 21,848 lakh from Rs 8,670 lakh in FY25.
EBITDA rose sharply to Rs 4,537 lakh from Rs 1,432 lakh, while EBITDA margin improved to 20.8 per cent from 16.5 per cent.
Net profit for FY26 stood at Rs 2,935 lakh, compared with Rs 966 lakh in the previous financial year. PAT margin also improved to 13.4 per cent from 11.1 per cent.
