Nuvama Wealth 1:5 Stock Split: Record Date Set for Dec 26

Introduction to Nuvama's Corporate Action

Nuvama Wealth Management is set for a significant corporate action as it approaches the record date for its first-ever stock split. The company has fixed Friday, December 26, 2025, for the subdivision of its equity shares. Due to a stock market holiday for Christmas on December 25, the stock will trade ex-split today, December 24. This means investors who purchased shares after December 23 will not be eligible for the benefits of this split. The move is intended to make the company's shares more accessible to a broader range of investors by increasing the number of shares in circulation and reducing the per-share price.

Details of the 1:5 Stock Split

According to the official filing with the stock exchange, Nuvama Wealth Management will execute a stock split in a 1:5 ratio. This action will divide each existing equity share with a face value of ₹10 into five equity shares, each with a new face value of ₹2. The proposal was initially approved by the company's board of directors and subsequently received shareholder consent through a postal ballot on December 7, 2025. This is the first time the company has undertaken a stock split, marking a notable event in its corporate history.

Understanding Key Dates: Record Date and Ex-Date

The record date is crucial for determining shareholder eligibility. Nuvama has confirmed December 26, 2025, as the record date. However, due to the T+1 settlement cycle in the Indian stock market, an investor must have the shares in their demat account on the record date. To ensure this, the shares must be purchased before the ex-split date. Since December 25 is a holiday, the effective last day to buy shares to be eligible for the split was December 23. The stock begins trading at its adjusted price on the ex-split date, which in this case is December 24.

Rationale and Impact on Shareholders

The primary objective of a stock split is to enhance the liquidity of a company's shares in the secondary market. By lowering the price per share, the stock becomes more affordable for retail investors, which can lead to increased trading volumes. It is important for investors to understand that a stock split does not alter the company's market capitalization. The total value of an investor's holding remains the same immediately after the split; they simply own a larger number of shares at a proportionally lower price. For example, an investor holding 10 shares before the split will hold 50 shares after, with the total investment value remaining constant.

Nuvama's Recent Financial Performance

Nuvama Group reported a steady financial performance for the second quarter of fiscal year 2026. The company's consolidated revenues reached ₹772 crore, marking a 4% increase from the ₹740 crore reported in the same quarter of the previous fiscal year. The Wealth Management segment was a key driver of this growth, with its revenues climbing 26% year-on-year to ₹438 crore in Q2. For the first half of the fiscal year, the segment's revenue grew by 22% to ₹815 crore. Profitability also saw a healthy improvement, with profit before tax (PBT) for the segment rising 27% year-on-year to ₹151 crore in the second quarter.

Strong Growth in Client Assets

The company's wealth management business continues to manage a significant portfolio. Client assets under this division stood at a robust ₹3,18,573 crore at the end of the second quarter. A major contributor to this performance was the Managed Portfolio Investment Services (MPIS) business, which recorded a substantial 74% year-on-year growth in revenue. This highlights the firm's strong position in catering to high-net-worth individuals, family offices, and institutional clients across India.

Stock Market Reaction

In anticipation of the corporate action, shares of Nuvama Wealth Management have been in focus. On Wednesday morning, the stock opened higher at ₹7,465.50 per share, a gain of 2.52% from its previous close. Throughout December, the stock has appreciated by approximately 6%, indicating positive investor sentiment leading up to the split. The stock's performance over the past year has been strong, reflecting investor confidence in its business model and growth prospects.

Conclusion and Forward Outlook

Nuvama Wealth Management's 1:5 stock split is a strategic move aimed at improving shareholder accessibility and trading liquidity. While the action does not change the fundamental value of the company, it makes the stock more attractive to retail investors. Supported by strong financial performance in its core wealth management segment and growing client assets, the company is well-positioned in the market. Investors will be watching how the increased liquidity impacts the stock's trading patterns following the ex-date.