Nuvama Wealth Management Stock Split 2025: Key Dates & Details

Introduction to Nuvama's Corporate Action

Nuvama Wealth Management Limited has announced its first-ever stock split, a significant corporate action aimed at making its shares more accessible to a wider base of investors. The company has set Friday, December 26, 2025, as the record date for this sub-division of its equity shares. The board approved the stock split in a 5:1 ratio, a move that will increase the number of shares in circulation while reducing the per-share price, without altering the company's overall market capitalization. This strategic decision is expected to enhance the stock's liquidity in the secondary market.

Understanding the Split Ratio and Face Value Change

The approved stock split will sub-divide each existing equity share of Nuvama Wealth Management, which has a face value of ₹10, into five equity shares, each with a new face value of ₹2. This means for every one share an investor holds before the split, they will have five shares in their account after the split. For example, an investor holding 100 shares will see their holding increase to 500 shares. Consequently, the market price of the share will adjust downwards in proportion to the split ratio. The total value of an investor's holding will remain unchanged immediately following the corporate action.

Key Dates: Record Date and Ex-Date Explained

Nuvama has confirmed December 26, 2025, as the record date to determine shareholder eligibility for the split. However, investors must understand the implications of the T+1 settlement cycle in the Indian stock market. To be eligible, an investor must have the shares credited to their demat account on the record date. Due to a stock market holiday for Christmas on December 25, the stock will trade ex-split on Wednesday, December 24, 2025. This means that any purchases made on or after December 24 will not entitle the buyer to the benefits of the split. The last day to buy shares to be eligible was effectively December 23, 2025.

Rationale Behind the Stock Split

The primary objective of this corporate action is to enhance the liquidity of the company's shares. A lower per-share price makes the stock more affordable and psychologically appealing to retail investors, which can lead to increased trading volumes and broader participation. While a stock split does not change the fundamental value or business operations of Nuvama Wealth Management, it is often viewed positively by the market as a sign of management's confidence and a step towards creating greater shareholder value by improving marketability.

Financial Performance and Business Health

Nuvama Group's financial performance provides a solid backdrop to this corporate action. For the second quarter of the fiscal year 2026, the company reported consolidated revenues of ₹772 crore, a 4% increase year-on-year. The Wealth Management segment was a significant growth driver, with its revenues climbing 26% year-on-year to ₹438 crore. Profit before tax (PBT) for this segment also saw a healthy rise of 27% to ₹151 crore in the same quarter. At the end of Q2, the company's client assets under the wealth division stood at a robust ₹3,18,573 crore, underscoring its strong market position.

Market Reaction and Stock Performance

In anticipation of the stock split, shares of Nuvama Wealth Management have been in focus. On the day the stock turned ex-split, it opened higher at ₹7,465.50 per share, up 2.52% from its previous close. While the stock has appreciated by approximately 6% during December, it has also faced some profit-booking after a strong rally in the preceding months. Over a two-year horizon, the stock has delivered impressive returns, surging by nearly 98%, reflecting strong investor confidence in its long-term growth prospects. The split is expected to further support trading activity in the counter.

What This Means for Investors

For existing shareholders, the number of shares they own will increase fivefold, but the total value of their investment will remain the same at the time of the split. The cost basis per share will be adjusted downwards, which is an important consideration for calculating capital gains tax upon selling the shares in the future. The stock split itself is not a taxable event. New investors may find the lower share price an attractive entry point. However, all investment decisions should be based on the company's fundamentals, business strategy, and long-term outlook rather than short-term market events like a stock split.

Conclusion

Nuvama Wealth Management's 5:1 stock split is a strategic initiative to improve liquidity and broaden its shareholder base. Supported by steady financial growth and a strong position in the wealth management sector, the company is positioning itself for continued expansion. While the split does not alter the company's intrinsic value, it makes the stock more accessible to retail investors. Market participants will be closely observing the trading patterns and investor interest in the stock following this significant corporate action.