A reverse stock split is the opposite of a stock split. Instead of dividing shares, the company merges multiple shares into one increasing the face value and reducing the share count proportionally. The total value of your holding remains the same.
How it works
In a 1:2 reverse split, every two shares you hold are consolidated into one, and the face value doubles. The price per share adjusts upward accordingly.
If you hold 200 shares at ₹50 each with a face value of ₹5, after a 1:2 consolidation you’ll hold 100 shares at ₹100 each with a face value of ₹10. Total value stays at ₹10,000.
How does it reflect in your DEMAT?
Like a split, the adjustment is automatic on the ex-date. Your updated share count reflects in your DEMAT without any action from your end.
Easy & quick
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