Star Health & Allied Insurance Company Ltd Splits

A stock split is a corporate action in which a company like Star Health & Allied Insurance Company Ltd divides its existing shares into multiple shares, reducing the price per share without changing the total market capitalization.

A stock split makes shares more affordable, attracts new investors, and boosts liquidity in the market—all while keeping the overall market capitalization intact.

Example: If Star Health & Allied Insurance Company Ltd announces a 2-for-1 stock split, and you own 100 shares priced at ₹200 each, after the split, you’ll own 200 shares priced at ₹100 each. Your total value remains the same - but now more affordable for new buyers!

At Pocketful, tracking stock splits for Star Health & Allied Insurance Company Ltd and other stocks is effortless, so you’re always in sync with market moves.

1. No Change in Value: The total value of holdings remains the same despite the split.
2. Increased Liquidity: More shares lead to higher trading volume and liquidity.
3. Improved Affordability: The reduced price per share attracts retail investors.
4. Psychological Impact: Lower prices may create the perception of affordability, boosting investor interest.

1. Announcement Date: The date when the company declares the stock split.
2. Record Date: The cut-off date to determine eligible shareholders for the split.
3. Ex-Split Date: The date when the stock starts trading at the adjusted price.
4. Effective Date: The date on which new shares are credited to shareholders.

Suppose Star Health & Allied Insurance Company Ltd announces a 2-for-1 stock split on January 1, 2024. The key dates are:

• Announcement Date: January 1, 2024
• Record Date: January 10, 2024
• Ex-Split Date: January 11, 2024
• Effective Date: January 15, 2024

If an investor holds 100 shares of Star Health & Allied Insurance Company Ltd priced at ₹200 per share, after the 2-for-1 split, they will hold 200 shares priced at ₹100 per share. The total investment value remains ₹20,000.

1. Forward Stock Split: Increases the number of shares, reducing the price per share (e.g., 2-for-1 or 3-for-1).
2. Reverse Stock Split: Decreases the number of shares, raising the price per share (e.g., 1-for-2 or 1-for-3).

A stock split isn’t just about affordability—it’s often a sign of strength. For Star Health & Allied Insurance Company Ltd, splits typically:

1. Increased Accessibility: Lower share prices make stocks affordable for more investors, particularly retail investors.
2. Higher Liquidity: More shares in circulation improve trading volumes.
3. Positive Market Perception: Often viewed as a sign of strong performance and growth potential.
4. Portfolio Adjustment Opportunities: Investors can diversify holdings with split-adjusted shares.

Tracking stock splits is simple with Pocketful:

1. Visit the Corporate Actions section of Star Health & Allied Insurance Company Ltd.
2. Select the Stock Splits tab to view historical and upcoming splits.

• No Tax on Split Shares: Stock splits are not taxed at the time of issuance.
• Cost Adjustments: The cost per share is adjusted proportionally to the split.
• Capital Gains Tax: Gains from selling split shares are taxed based on the adjusted purchase price and holding period:
  • Long-Term Gains (holding > 1 year): Taxed at 12.5% if gains exceed ₹1,25,000 .
  • Short-Term Gains (holding ≤ 1 year): Taxed at 20% .

Stock splits are more than just numbers—they’re milestones. They reflect confidence, accessibility, and expansion.

For companies like Star Health & Allied Insurance Company Ltd, a stock split often marks a new phase of growth—and for investors, it’s an opportunity to capitalize on affordability, liquidity, and long-term gains.

With Pocketful, staying ahead of stock splits is effortless. Track announcements, analyze impacts, and invest smarter—because when companies grow, so should your investments.