Stock Split
A stock split divides each existing share into multiple shares by reducing the face value — for example, one ₹10 face-value share splitting into ten ₹1 shares. The share count rises and the price falls proportionately; the value of your holding is unchanged.
A split differs from a bonus issue in accounting, not in effect on your wealth: a split subdivides the face value (reserves are untouched), while a bonus issues new shares by capitalising reserves (face value unchanged). In India the minimum face value is ₹1, so a company already at ₹1 face value cannot split further.
Companies split shares mainly to improve liquidity and affordability when the per-share price has run up far enough to deter small investors. The process needs board and shareholder approval and a record date; your demat account is credited with the new shares automatically.
For taxes, a split keeps your original acquisition date and spreads your original cost across the larger share count — unlike bonus shares, which carry zero cost. Nothing else about the company changes: same market cap, same earnings, same ownership percentage.
In practice
JSW Dulux's board approved splitting each ₹10 share into ten ₹1 shares, subject to shareholder approval by postal ballot, which would take its paid-up share count from about 4.55 crore to 45.54 crore. Read the filing (11 Aug 2026) →
Common questions
Does a stock split change my dividend?
Not in total. After a split the company declares dividends per new share, so the per-share figure is lower in line with the split ratio: a ₹10 dividend before a 1:10 split is equivalent to ₹1 per share afterwards. How much you receive overall depends on what the company decides to pay, not on the split.
What happens to futures and options after a stock split?
The exchanges adjust open F&O contracts on the ex-date so that positions keep the same value: the lot size is multiplied by the split ratio and strike prices are divided by it. A 1:5 split turns a lot of 100 at a ₹1,000 strike into a lot of 500 at a ₹200 strike. The exchange announces the exact adjustment in a circular.
Why does a stock get a new ISIN after a split?
An ISIN identifies one specific security, and a split changes that security's face value. The depositories therefore usually assign a new ISIN to the split shares and retire the old one once holdings have been converted. Most charting platforms adjust past prices so the chart stays comparable across the split date.
What is a reverse stock split (share consolidation)?
It is the opposite of a split: several shares are combined into one with a higher face value, for example ten ₹1 shares into one ₹10 share. The share count falls and the price rises in proportion, leaving the value of a holding unchanged. It is less common in India, and fractional entitlements left over are usually settled in cash.
How stocks tend to react
Split announcements sometimes produce a modest positive reaction on the affordability/liquidity story, but it is usually smaller and shorter-lived than reactions to genuinely fundamental news. A split during a strong uptrend often reads as management ratifying the run; in a weak stock it changes little.
MarketPing measures this instead of guessing: every analysed announcement carries the stock's actual price reaction across 14 horizons, and the Reaction Lab aggregates how each category of announcement has historically moved stocks.
See it happening now
Stock splits & bonuses on Discover → — the NSE and BSE companies that filed one recently, each with its filing and the measured price reaction.
Related terms
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Educational content, not investment advice. Regulations and tax rules change — verify current rules before acting.