Multibagger penny stock that has risen 621% in 1 year sets record date for stock split

RO Jewels, which has given multibagger returns to investors in the last one year, has fixed March 18 as the record date for its proposed stock split.

The company had earlier announced to split its shares in the ratio of 1:5.

"We wish to inform you that the company has fixed 18 March, 2023 as the revised record date for determining the eligibility of members for the purpose of sub-division of the equity shares of the company from face value of Rs 10 each to face value of Rs 2 each," the company said in a filing.

Stock split is usually done to increase the liquidity of the stock in the market. On the ex-split date, investors who are holding the stock until the record date will receive the new shares in demat accounts and the stock price will be adjusted according to the split ratio.

On Tuesday, shares of RO Jewels hit an upper circuit of 5% at Rs 32.60 apiece on NSE. The company's stock has risen by a massive 621% in the last one year. So far this year, the shares are down 47.03%.

RO Jewels is engaged in the wholesale business of gold and silver chains based out of Ahmedabad. The company sells gold based chains, bracelets, gold/silver bars and necklaces. It procures gold and silver majorly through the bullion market and partially from the local markets in Ahmedabad.

The company purchases only readymade chains and other jewellery from the jewellery manufacturers or independent jewellery wholesalers in Ahmedabad and Mumbai and then sells them. Its jewellery is widely sold throughout Gujarat and has a diversified portfolio for chains.

RO Jewels has recorded a revenue of Rs 105 crore for the December quarter, while net profit stood at Rs 35 crore during the same period.

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