Angel One Approves 1:10 Stock Split, Declares ₹23 Dividend

Introduction to Angel One's Strategic Decisions

Angel One Ltd. has announced significant corporate actions following its board meeting on January 15, 2026. The company's Board of Directors approved a 1:10 stock split, declared a substantial interim dividend of ₹23 per share, and reversed a previous decision to transfer its core business to a subsidiary. These moves are aimed at enhancing shareholder value, improving stock liquidity, and refining the company's operational strategy.

Details of the Stock Split

The board has given its approval for the sub-division of the company's equity shares. Each existing share with a face value of ₹10 will be split into ten equity shares, each with a new face value of ₹1. This 1:10 stock split is designed to make the company's shares more affordable for retail investors, thereby encouraging wider participation and increasing liquidity in the stock market. The move does not change the underlying value of the company but increases the number of shares in circulation, which often leads to higher trading volumes.

Interim Dividend Announcement

In a move to reward its shareholders, Angel One has declared an interim dividend of ₹23 per share for the financial year 2025-26. The dividend applies to the pre-split shares with a face value of ₹10. The company has set January 21, 2026, as the record date to determine which shareholders are eligible to receive the dividend. The payment will be completed on or before February 13, 2026. This dividend declaration reflects the company's strong financial position and its commitment to returning profits to its investors.

Strategic Reversal: Withdrawal of Business Transfer

A notable strategic shift was the board's decision to withdraw the proposed transfer of its key business segments to Angel Securities Limited, a wholly-owned subsidiary. The plan involved moving the securities broking, depository participant, mutual fund distribution, and research analyst businesses. The company stated that this reversal comes after a careful reassessment of the current internal and external business environment. This decision suggests a change in the company's long-term structural planning, opting to maintain its existing operational framework for now.

Financial Performance Snapshot

The board meeting also included a review of the company's financial results for the nine months ending December 31, 2025. The performance highlights the company's growth trajectory and profitability.

These figures demonstrate a robust financial performance, providing a solid foundation for the announced shareholder-friendly measures like the dividend payout.

Market Context and Rationale

Stock splits are a common corporate action used by companies whose share prices have increased significantly. By making shares more accessible, companies can attract a broader base of retail investors. This can lead to increased demand and improved trading liquidity. For Angel One, this move aligns with its focus on the retail segment of the Indian stock market. The combination of a stock split and a healthy dividend is often viewed positively by the market, as it signals confidence from the management in the company's future earnings and cash flow.

Impact on Investors and the Market

For existing shareholders, the stock split will increase the number of shares they hold tenfold, though the total value of their investment will remain the same immediately after the split. For example, an investor holding 100 shares will own 1,000 shares post-split. The primary benefit is the potential for increased liquidity, making it easier to buy or sell shares. The interim dividend provides a direct cash return to investors, further enhancing the stock's appeal. The withdrawal of the business transfer provides clarity on the company's immediate corporate structure, removing uncertainty that may have existed around the proposed changes.

Conclusion

The decisions made by Angel One's board on January 15, 2026, represent a multi-faceted approach to strengthening its market position and rewarding shareholders. The 1:10 stock split aims to democratize share ownership, while the ₹23 interim dividend underscores the company's financial health. The strategic withdrawal of the business transfer indicates an adaptive approach to its long-term planning. Together, these actions are likely to be well-received by the market and position Angel One for continued engagement with its growing investor base.