Colorchips New Media has made a public announcement regarding a consolidation in its equity share face value from Rs. 2 to Rs. 10. This means that for the eligible shareholders as on the record date which is 12 June 2024, their 80 equity share(s) each of face value Rs. 2 will be converted to 16 equity share(s) each of face value Rs. 10. Note that as the face value of the share increases, this type of corporate action is also called as Reverse Split.
The detailed announcement by the company can be found here.
Please find some helpful FAQs on the share split of Colorchips New Media below
1. How to participate in the share consolidation of Colorchips New Media?
If you hold the shares of Colorchips New Media as on the record date which is 12 June 2024, then you are eligible for the share consolidation.
2. In case of share consolidation of Colorchips New Media, does the ISIN number of the security changes?
Yes. In case of share consolidation, the face value of the share changes and hence the ISIN number also changes.
3. In the holdings, old quantity of Colorchips New Media is shown on the Ex-Date. Why is the holding not updated?
Portfolio holdings are generated as per the previous settlement day and thus on the Ex-Date which is 12 June 2024, old quantity will be visible.
4. How to participate in the share consolidation if you are not an existing share holder of Colorchips New Media?
If you are not an existing shareholder of Colorchips New Media but want to participate in the share consolidation, make sure to purchase shares of Colorchips New Media before the Ex-Date which is 12 June 2024.
5. What is the impact of share consolidation on the stock price of Colorchips New Media?
On the Ex-Date which is 12 June 2024, the price of the stock gets adjusted due to the share consolidation. Due to this adjustment, you see a rise in your unrealized profit. The rise is corrected once the shares with new face value of Rs. 10 are credited to your holdings.
6. What is the impact of share consolidation on the cost price of Colorchips New Media in the portfolio?
The cost of acquisition of shares gets adjusted as per the new face value of Rs. 10 and the holding period remains the same as per ITD guidelines.
7. If shares of Colorchips New Media are bought via MTF, is the shareholder eligible for share consolidation?
Yes, even if a shareholder has bought the shares of Colorchips New Media via MTF, the shares with new face value of Rs. 10 shares will be issued the and MTF holdings will get automatically updated.
8. If shares of Colorchips New Media are bought and pledged for Margin, is the shareholder eligible for share consolidation?
Yes, even if a shareholder has bought the shares of Colorchips New Media and pledge them to get margin, the shares with new face value of Rs. 10 shares will be issued the and pledge holdings will get automatically updated.
What do you think about this consolidation action? Feel free to use this thread to discuss.