Eraaya Lifespaces has been making significant strides on Dalal Street, with its shares consistently reaching record highs month after month, delivering substantial returns to its shareholders in a relatively short time.
The company’s shares, priced at just ₹7.75 apiece three years ago, have skyrocketed by an incredible 25,758%, currently trading at ₹2,004. At the stock’s peak price of ₹3,169, achieved in early October, the returns were even more astounding, reaching 40,790%.
For perspective, an investor who put ₹1 lakh into the stock three years ago and held onto the investment until now would see its value grow to ₹2.6 crore.
Meanwhile, the company ‘s board of directors, in a meeting held on Friday, set December 6 as the record date for its proposed stock split. On November 22, the board approved the sub-division of equity shares in a 1:10 ratio.
A stock split is a corporate action initiated by a company to increase the liquidity of its stock in the secondary market. This process involves dividing existing shares into multiple shares, thereby reducing the nominal value of each share.
Investors holding the stock until the “record date” receive the newly split shares in their demat accounts. The stock price is then adjusted proportionally based on the predetermined split ratio, maintaining the overall market capitalisation of the company.
About Eraaya Lifespaces
Eraaya Lifespaces was conventionally engaged in manufacturing cycles for kids with the brand name Tobu Cycles. In the last year, the company amended its object clause and entered the hospitality business along with the business of trading in securities and digital marketing.
Now, the company offers a versatile range of hospitality services, including accommodation related to leisure travel, pleasure, or business purposes.
In its FY24 annual report, the company stated that it is in the process of acquiring various properties, which it plans to utilise for branded outlets under a fixed rent plus revenue-sharing model. In this segment, the company provides commercial spaces to reputed quick service restaurants (QSRs) that focus on delivering food to customers quickly and efficiently.
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