CAMS Board Approves 1:5 Stock Split — What It Means for Shareholders
In a move aimed at increasing liquidity and improving affordability for retail investors, the board of Computer Age Management Services Ltd (CAMS) has approved a 1:5 stock split.
What Change Is Being Proposed?
- Under the approved plan, each equity share with face value ₹10 will be split into five shares, each with a face value of ₹2.
- The authorised share capital remains unchanged at ₹51.25 crore.
- After the split, the number of authorised shares will increase from 5.12 crore shares of ₹10 to 25.62 crore shares of ₹2.
- Paid-up capital will also remain the same (₹49.53 crore) — it’s purely a subdivision of existing shares.
Rationale & Objectives
CAMS says the primary aims behind this corporate action are:
- Improving liquidity in its shares, making trading easier.
- Making shares more accessible for retail investors by lowering individual share prices.
- Broadening shareholder base via better affordability and participation.
Process, Approvals & Timeline
- The split is subject to shareholder approval, which will be sought via postal ballot.
- The company will announce the record date (to determine eligibility for the split) in due time after shareholder approval.
- The entire process is expected to be completed within two months from when shareholder approval is secured.
Financials & Company Profile
- In Q1 FY26 (ended June 2025), CAMS posted a net profit of ₹109.09 crore, up ~0.81%, and net sales of ₹354.15 crore, up ~6.86% year-on-year.
- The company is a leading registrar & transfer agent in India’s mutual fund industry, handling platform services for the BFSI sector. It has a ~68% market share in terms of mutual fund average assets under management (AAUM).
- The stock closed at ₹3,863 on the day of the announcement, rising ~0.80% intraday.
What Shareholders & Investors Should Note
- The market price per share will adjust proportionally; while the value of one’s holding should not change immediately, liquidity may improve.
- Some investors may benefit from lower entry cost, enabling minor investors to buy smaller lots.
- Until the record date and split’s implementation, the existing shareholding structure holds.
- Investors should keep an eye on the postal ballot notice, record date, and exchange filings to time their trades or decisions.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
