Stock Split 2025 – Record Date, Ex-Date & Ratio Details

Split Share Calculation  

• You have 20 shares of “AB” Ltd. 
• The current share price is = ₹1000 
• Face value is=₹10. 
• Your total investment value is = ₹20,000 per share. 
• Split ratio is 2:1                    
• 20 shares will be 40 shares of “AB” Ltd. 
• But the current market price will be 500 along with a face value of ₹5. 
• Your total investment remains the same as before, 500*40=  ₹20,000. 

(After the split share, the current share price and face value are divided by the split ratio)

Does a Stock Split Impact the Value of Your Investment?

No, the Stock split does not impact your total investment. In fact, the company always has the motive to reduce share price, making it more affordable for the public, but the split share process does not affect existing stakeholders’ investment. 

Reason Behind Split Shares 

• Split shares decrease the share price according to the ratio, this attracts investors to invest with a small amount and reserve their money. 
• Moreover, this assists a company in enhancing its outlook, reliability, and profitability. 
• A stock split makes shares cheaper, so more people can afford to buy them. This can lead to more buying and selling of the stock. 

Dates to watch for during a stock split. 

1. Record Date

The record date indicates how many equity holders will receive an extra share. If one has purchased shares before the record date, allowed to acquire an extra date, but after the record date not. 

For Instance, the record date is 22 April, If you purchased stock on 20th April, you are eligible for extra shares. However, on 23 April, you will not the part of a stock split. 

2. Ex-Date

Ex-Date Depict: stocks will start to trade at new prices. If someone has invested money in an ex-date, he or she is not allowed to hold more shares.