{"id":26389,"date":"2026-04-03T19:15:35","date_gmt":"2026-04-03T19:15:35","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=26389"},"modified":"2026-04-03T19:15:49","modified_gmt":"2026-04-03T19:15:49","slug":"what-is-a-spin-off","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-a-spin-off\/","title":{"rendered":"What Is a Spin-Off?"},"content":{"rendered":"\n<p>A spin-off is when a company separates one of its businesses or divisions into a new independent company. Existing shareholders of the parent company receive shares of the new company at no additional cost and in proportion to their holding as of the record date.<\/p>\n\n\n\n<p>Companies do this to unlock value from a division that may be undervalued within the larger company, to allow each business to focus independently on its own strategy, to separate a high-growth business from a mature one, or to simplify the parent company&#8217;s structure.<\/p>\n\n\n\n<p>Your shares in the parent company remain as they are. In addition, shares of the newly spun-off entity are credited to your DEMAT automatically. The parent company&#8217;s stock price typically adjusts downward to reflect the value that has been separated out. Spin-offs are mandatory corporate actions, no action is required from your end.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2869],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26389"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=26389"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26389\/revisions"}],"predecessor-version":[{"id":26391,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26389\/revisions\/26391"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=26389"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=26389"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=26389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}