Here is a split share list 2025 featuring companies that are scheduled to undergo a stock split:
Disclaimer: The table is for educational purposes only and should not be considered a recommendation. Please verify information independently or seek professional guidance if needed.
Types of stock splits
Mostly, companies split stocks using these two processes:
1. Regular stock split
In this method, a company issues additional shares to current shareholders. This increases the number of outstanding shares, which leads to a fall in the normal price. Investors must note that the company’s valuation and market capitalisation remain constant.
2. Reverse stock split
As the name suggests, this method is the opposite of the regular stock split. Instead of issuing new shares, a company absorbs the excess shareholding following a pre-defined ratio. For example,
Say you hold 10 shares of a company at Rs. 10 per share.
The company declares a “2-for-1 reverse stock split”.
Now, you would end up with 5 shares.
However, the overall value of your shares remains unchanged.
Earlier, you had 10 shares worth Rs. 4 each, making the total investment Rs. 40.
After the reverse split, your total investment value stays at Rs. 40. However, the 5 shares would be worth Rs. 8 each.
Overall, the number of shares is reduced. Your value of holding remains the same.
How share split works?
A stock split is a corporate action wherein a company divides its existing shares into multiple new shares. While this operation does not alter the company's overall market capitalisation, it significantly impacts the share price and number of outstanding shares. Companies often undertake stock splits to enhance their stock's liquidity and accessibility. A high share price can deter potential investors due to the substantial investment required for acquiring a single share. By dividing the shares, the company effectively lowers the price per share, making it more affordable for a broader investor base. This increased accessibility can lead to higher trading volumes and improved liquidity.
Furthermore, a stock split can be a strategic move to enhance the company's image. A lower share price can create a perception of affordability and growth potential, attracting new investors. This can positively influence market sentiment and potentially drive up the stock price in the long term.
Mechanics of a stock split
In a share split, the number of shares increases proportionally, while the share price decreases correspondingly. For instance, in a 2-for-1 split, each shareholder receives two new shares for every one share held previously. The total investment value remains unchanged.
For example, if an investor owns 100 shares of Company XYZ at ₹800 per share, the total investment value is Rs. 80,000. Following a 2-for-1 stock split, the investor would hold 200 shares at Rs. 400 per share, with the total investment value staying at Rs. 80,000.
It is essential to note that a share split does not inherently create additional value for shareholders. The underlying fundamentals of the company remain unaffected. The primary benefits of a stock split are often psychological and related to improving market liquidity and accessibility.
How does a stock split affect you?
To clearly understand the impact of a stock split, it helps to look at how it affects both existing and prospective shareholders.
For existing shareholders, a stock split does not bring any noticeable change to the total value of their investment. The number of shares increases, and the price per share decreases proportionally, but the overall value remains the same. However, the split does offer practical benefits. Managing a portfolio becomes easier due to smaller, more flexible units, and the added liquidity ensures smoother buying and selling. Shareholders also gain more shares without needing to invest additional money.
For new or prospective investors, a stock split makes the stock more affordable. A lower per-share price encourages wider participation, especially among retail investors who may have found the earlier price too high. This helps the company attract more investors and potentially increases market interest in the stock.
Companies choose to split shares for two key reasons. The first is improved liquidity. By increasing the number of outstanding shares, companies ensure that the stock becomes easier to trade, with more buyers and sellers in the market. The second reason is affordability and investor appeal. A very high share price can discourage new investors. A split reduces the price to a more accessible level, broadening the shareholder base without affecting the company’s overall market capitalisation.
Consider this simple example:
If Apollo Hospital trades at Rs. 5,000 per share and undergoes a 5:1 stock split, the share price becomes Rs. 1,000 after the split. Although investors now hold more shares, the total value of their investment remains the same. What changes is the accessibility and liquidity, making it easier for retail investors to participate in the stock.
Factors that can impact the investors during a Stock Split
A stock split can influence investors in several practical ways, affecting share count, pricing, taxation, and overall accessibility of the stock.
Change in share count: Investors receive more shares, but their ownership percentage in the company stays the same. Only the share count and per-share price change.
Impact on share price: In a forward split, the price per share drops proportionally. This often makes the stock more accessible to investors, potentially increasing demand.
Investment value remains constant: The split doesn’t affect the total value of your investment unless there are market-driven price movements post-split.
Tax implications: Stock splits don’t trigger immediate tax liability. However, the cost basis per share is adjusted, influencing capital gains calculations when shares are eventually sold.
Additional read: Types of stock trading
Example of stock splits
Example 1: Suppose the company ‘XYZ Limited’ announced a stock split at a 1:10 ratio. This implies each existing share with a face value of Rs. 10 was subdivided into ten shares with a face value of Rs. 1. The record date for this split was set for January 10, 2024. Before the stock split, XYZ Limited’s share price was approximately Rs. 25,000 per share. After the 1:10 stock split, the price per share adjusted to around Rs. 2,500. This move made the stock more affordable and increased liquidity in the market.
Example 2: Similarly, ABC Limited approved a 1:5 stock split, where each existing share with a face value of Rs. 10 was subdivided into five shares with a face value of Rs. 2 each. The record date was set for May 20, 2024. Before the split, ABC Limited's share price was Rs. 500. Following the split, the price per share would be approximately one-fifth of the pre-split price, making it Rs. 100 per share.
Key dates in a stock split
- Record date: The record date is when a company reviews its records to identify shareholders eligible for a stock split.
- Ex-split date: The ex-split date marks when the stock begins trading at the newly adjusted split price..
Existing shareholders will receive sub-divided shares credited with the new ISIN on the trading day following the record date.
What is a reverse stock split?
While you now understand what a stock split is in the share market, you must also know about a reverse stock split. A company can also reduce its outstanding shares by increasing the share’s face value without reducing the market capitalisation.Similar to a stock split, the shareholder’s investment value remains unchanged by a reverse stock split.
Let us assume you hold 100 shares in a certain company (let’s call it ABC) at a share price of Rs. 10. Your total investment value in the company is 100*10 = Rs. 1,000. If the company opts for a reverse stock split in a 1:2 ratio, you will now hold 100/2 = 50 shares. However, your total investment value remains Rs. 1,000.
Thus, a share split allows prospective investors to buy shares in the company and provides greater flexibility to the current shareholders, with more liquidity and ease of portfolio management. If you are looking to invest in a certain stock and it goes for a split, you can easily buy it at a lower price.
Advantages of stock splits
A stock split provides meaningful advantages to both companies and investors by improving affordability, enhancing market participation, and supporting long-term trading efficiency across various market conditions.
1. Boosts liquidity
A stock split increases the total number of shares available in the market, which leads to higher trading volumes. It also increases liquidity, and investors can easily buy and sell the company's shares in the market.
2. Attracts new investors
As we know, after a stock split, the shares of a company are priced lower. The reduced price attracts investors who found the pre-split price too high. A broader investor base heightens demand, which increases the stock price.
3. Makes shares more affordable
Share splits alter perceptions and create a sense of affordability. By reducing the capital layout per share, investors now feel the shares are within their means. For example, say a stock was priced at Rs. 3,000 before the split. After a 5-for-1 split, the price drops to Rs. 600. Now, the share seems more affordable to small investors.
4. Can increase the company’s market cap over time
Stock splits increase the number of outstanding shares, but that does not automatically increase the company’s market capitalisation. However, we have to consider the impact of a stock split on the market cap. For example, if perceived positively, it could attract more investors, resulting in increased share prices over time. In this instance, the company’s market cap can grow eventually.
Disadvantages of stock splits
Stock splits come with certain drawbacks. They incur costs related to legal formalities, regulatory paperwork, and shareholder communications, which can be burdensome for smaller firms. Following a split, lower share prices can trigger speculative trading, thereby increasing price volatility. While initial excitement may boost stock performance, such effects are often short-lived unless backed by strong fundamentals. In today’s era of fractional investing, their impact on affordability has reduced. Moreover, frequent splits might signal a focus on financial optics rather than genuine business growth, potentially eroding investor confidence.
1. No change in the value of a company
Despite being a major corporate event, a stock split doesn’t change the fundamental value of the business. The total market value, earnings, and financial health of the company remain the same before and after the split.
2. Increased volatility in the stock price
A stock split leads to greater fluctuations in the stock’s price. This volatility can increase the gap between buying and selling prices. Also, it creates more prominent short-term price changes, increasing the chances of sustaining losses, especially for retail investors.
3. Signals poor financial health
Sometimes, a stock split signals that the company is struggling financially. It shows that a company is not confident about its future prospects. As the stock market is highly sentimental, such a perception can negatively impact the stock price and investor confidence.
Conclusion
Stock splits make shares more accessible to a broader range of investors by making the shares more affordable. This reduction attracts more investors and enhances trading volumes. Also, it boosts liquidity and makes it easier for investors to buy and sell shares. However, it is crucial to understand that a stock split does not change the intrinsic value of the company. Instead, it simply redistributes the value across more shares. One major drawback is that companies declaring stock splits are sometimes viewed as financially unstable, reducing their stock price.
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