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Stock Split

A stock split is a corporate action which divides the face value of the outstanding shares of a company, thus increasing the number of shares available in the markets as free float.

A corporate action ranges from dividend payments, bonus issues, stock splits to mergers & acquisitions (M&As), and can materially impact you as a shareholder.

A corporate action is a great indicator of the company’s financial health and its short-term future.

If you're a shareholder or considering buying shares, you need to know the effect of such corporate actions on the company’s stock.

Here are some effects of a stock split:

  • Current shareholders are rewarded on a proportional basis thus unaffecting the value of their stake in the company
  • Potential buyers of the stock increase as the price per share goes down
  • Liquidity of the stock gets a boost
  • The market capitalization of the company remains the same even after the stock split

Stock splits are usually undertaken by companies with high per-share price and are gratifying to shareholders, both immediately and in the longer term.

Do you know that legendary investor Warren Buffett hates stock splits? His multinational conglomerate company Berkshire Hathaway has never undergone a stock split.

Check out the Indian companies that swear by Buffett’s no-split rule.


Tata Motors Demerger: Value Positive or Value Neutral?

Mar 6, 2024

Is the split good news for Tata Motors shareholders?

Stock Split Alert: This PSU Stock Prepares for First Ever Stock Split

Feb 10, 2024

This PSU bank will be carrying out its first ever stock split if it gets approved later this month.

Top 3 Stocks to Watch Out for Bonus Shares and Stock Splits in January 2024

Jan 19, 2024

These 3 stocks are turning ex-bonus, ex-split in January 2024. Do you own any?

5 Stocks to Watch Out for Upcoming Stock Splits in January 2024

Jan 8, 2024

Looking for stock splits in the new year? Check out the top 5 stocks set to undergo splits in January 2024.

Multibagger Defence Stock Announces Stock Split and Interim Dividend

Nov 8, 2023

While stock splits do not affect the underlying business, it is undeniable that there is price movement around stock split announcements and execution of the same.

Top 5 Stocks to Watch Out for Bonus Shares and Stock Splits in October 2023

Oct 7, 2023

These companies are set to issue bonus shares and are undergoing stock splits in October 2023.

4 Stocks to Watch Out for Bonus Shares and Stock Splits in September 2023

Aug 25, 2023

Here's the monthly bonus and stock split update for September 2023.

5 Stocks to Watch Out for Bonus Shares and Stock Splits in August 2023

Jul 24, 2023

These companies have declared bonus shares and stock splits for August 2023. Do you own any?

Top Stocks to Watch Out for Bonus Shares and Stock Splits in June 2023

May 17, 2023

These smallcap companies are set to issue bonus shares and stock split in June 2023. Do you own any?

Stock Split Alert: Multibagger Smallcap Water Treatment Firm Announces 1:10 Stock Split

Apr 22, 2023

Apart from split, the company's board also approved amendments in capital clause.

4 Stocks to Watch Out for Bonus Shares and Stock Splits in March 2024

Feb 20, 2024

Here's the monthly bonus and stock split update for March 2024.

This Renewable Energy Stock is Up 10,000% in 5 Years

Feb 2, 2024

The company's board recently approved a stock split along with rewarding shareholders with bonus shares.

Are Nestle Shares Finally Within Reach of Small Investors?

Jan 8, 2024

Has the split in Nestle stock made it more attractive for retail investors?

Stock Split Alert: FMCG Giant Announces First Ever Stock Split

Dec 25, 2023

One of India's most expensive stock is set for division. More details Inside.

Top 3 Stocks to Watch Out for Stock Splits in November 2023

Oct 21, 2023

These companies are turning ex-split in November 2023.

Vedanta Demerger: Potential for Value Creation but Uncertainty Remains

Oct 5, 2023

Anil Agarwal plans to split his conglomerate to unlock value for repaying debt. But will that solve his problem?

ITC Share Price Falls as Investors Disappointed with Demerger Ratio

Jul 25, 2023

What will happen after ITC hives off ITC Hotels? Continue reading to know more about the ITC Hotels demerger, share split ratio, and more.

Multibagger Defence Stock Declares Dividend and Split: Blue Skies Ahead

Jun 29, 2023

Hindustan Aeronautics is poised for takeoff. Here is what investors need to know about its split, dividend, and future plans.

Multibagger Stock Declares Blockbuster Quarterly Results & Stock Split. Do You Own It?

May 3, 2023

Share price of this beverages company recently hit a new 52-week high after announcing a stock split. More gains ahead?

5 Stocks to Watch Out for Bonus Shares and Stock Splits in May 2023

Apr 20, 2023

Here's the monthly bonus and stock split update for May 2023. These five companies are rewarding shareholders with bonus shares soon.