Stock To Watch: Auto Stock In Focus On Nearing 6 December Record Date For 10:1 Stock Split

Eraaya Lifespaces Ltd., a small-cap company, closed Friday's trading session 2.29% higher at Rs 1937.60 a share. The market value of the firm was Rs 3,663.70 Cr. Eraaya Lifespaces is one of Dalal Street's multibagger stocks; the share price shot up from Rs 116.25 to Rs 1,986.50 in 2024, yielding a multibagger return of 1,608.82% year-to-date. As the multibagger stock Eraaya Lifespaces approaches its record date for a 10:1 stock split, it is expected to be the focus of attention this week.

"Please refer the Company Intimation fixing Record Date dated November 22, 2024 for subdivision of 1 Equity Share of Rs. 10/- into 10 Equity Share of Re. 1/- i.e. FRIDAY, DECEMBER 6, 2024 and subsequent BSE Notice No. 20241125-46 dated November 25, 2024, we wish to inform, in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 that new ISIN for Company's Equity Shares having Face Value of Re. 1/- has been allotted as INE432F01032," said Eraaya Lifespaces in a stock exchange filing.

For the purpose of determining the eligibility of shareholders for subdivision/split of each equity share having a face value of Rs.10/- each into 10 equity shares having a face value of Re.1/- each, the firm decided to use Friday, December 06, 2024 as record date. In order to do this, Eraaya Lifespaces has decided to execute a suggested 10:1 stock split, in which every share that is now owned would now be converted into ten shares. The goal of this subdivision is to increase Eraaya's share liquidity and make those shares more affordable for smaller investors in order to draw in more investors.

The Board of Directors of Eraaya made the choice to issue 4,19,275 fully paid-up shares of 10 each to holders of Foreign Currency Convertible Bonds (FCCBs) who choose to convert their bonds in line with the company's growth goals. This conversion was made in relation to the FCCB Offering Circular dated August 23, 2024, which was issued up to USD 4 million. It received BSE In-Principal Approval on August 21. Due to this issuance, Eraaya now has 18.9 crore rupees in paid-up equity share capital, which is made up of 1,89,08,453 shares at 10 rupees each.

In terms of financial matters, Eraaya Lifespaces' net profit decreased by 50.00% to Rs 0.03 crore in the September 2024 quarter compared to Rs 0.06 crore in the September 2023 quarter. Compared to the same quarter of the previous fiscal, which ended in September 2023, when sales were Rs 236.15 crore, sales in the quarter ending in September 2024 fell 99.47% to Rs 1.24 crore.

A variety of products and services are provided by the Indian hospitality and real estate firm Eraaya Lifespaces. Prior to its incorporation in 1967, Eraaya Lifespaces originated as Tobu Enterprises Limited. In 2016-17, the organisation was renamed Justride Enterprises Limited; in 2023, it was renamed Eraaya Lifespaces Limited.