Face Value Split & Demerger
How splits and demergers change your share count and price — and what happens to your original cost.
Face value split
A split reduces the face value of each share (₹10 → ₹2, say) and multiplies the share count to match. The market price divides by the same ratio on the record date, leaving your investment value unchanged. Model it precisely with the stock split calculator.
Demerger
A demerger carves a business division out into a separate listed company, and you receive shares of the new entity in a fixed ratio. The parent's price drops by roughly the value of the business that left. Your original purchase cost gets apportioned between the two companies in a ratio the company publishes — keep that circular, you will need it for capital-gains tax.
Verify dates
Frequently asked questions
Why did a stock in my portfolio suddenly fall 50%?
Check for a corporate action first. A 1:2 split or a large demerger halves the quoted price without losing you any money — your broker usually credits the extra or new shares within a few days.