Global technology company Affle India shares were locked in 5 percent upper circuit at Rs 4,180.45 apiece on the BSE after the company’s board approved the sub-division of its equity shares.

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"The company board approved stock split (sub-division of equity shares) of the company's 1 equity share of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each, subject to the approval of shareholders and other approvals as may be required and post-approval of the shareholders for the stock split, record date for the same shall be October 8, 2021,” the company said in a release.

The stock price touched a 52-week high of Rs 6,287.00 on March 5, 2021, and a 52-week low of Rs 2,452.45 on August 9, 2020.

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Affle India share price rallied over 41 percent in the last one year and is up almost 10 percent YTD. However, the stock has come under pressure recently and is down more than 20 percent in last three months.

A stock split is done by any company to increase the number of shares that are outstanding by issuing more shares to current shareholders. Experts believe that it helps in improving marketability and generating liquidity for the company.

This is generally considered a bullish sign since valuations get so high that the stock may be out of reach for smaller investors trying to stay diversified.

Also Read: Explained: How does stock split affect investors

According to Nitin Purswani, CEO of Medius.AI, the investors' share is unaffected in case of a stock split as the market capitalisation remains intact. Following the breakup, though that may stimulate market trading activity, the par value of each share will decline in the same amount as the split ratio.

Since the value of the stock doesn’t get diluted, a stock split can help the investor to have a stock for 3 for 1 or 5 for 1, without any cost.

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(Edited by : Jomy Jos Pullokaran)