Upcoming stock splits
Stock split news
Corporate Actions - Splits
Find all the information you need about listed companies' corporate actions.
| Company Name | ISIN | Split Ratio | Ex Split Date |
|---|
What is a Stock Split?
A stock split divides the company’s current outstanding shares into a greater number of outstanding shares, i.e., the face value of the existing shares is reduced in a ratio defined by the board.
A stock split of 1:5 means splitting an existing share into five shares.
This reduces the company’s price per share, making it more affordable for the investor to buy. Generally, companies split their shares if the share price is high.
Did you know?
Berkshire Hathaway, which legendary investor Warren Buffett owns, has never split its shares. As of January 2024, the stock is trading at around USD 5,50,000. In terms of INR, it is equivalent to 4.5 crore per share!
What is a Reverse Stock Split?
As the name indicates, a reverse stock split decreases the number of outstanding shares by combining multiple shares into one share.
Generally, it is done by distressed companies whose share price is not performing well. It increases the company’s price per share, making it more attractive to the investors as many investors have criteria to not invest in low price or say, penny stocks. However, a reverse stock split decreases the liquidity of the stock because it decreases the number of outstanding shares.
If you own 5 shares and the per share value is INR 100. A reverse stock split of 5:1 means 5 shares are combined into 1 share. And that one share value is now INR 500.
Remember that in both cases, i.e., stock split and reverse stock split, the value of your holding neither decreases nor increases.
