CAMS shares adjust to 1:5 stock split: Here's why you should ignore the 80% plunge

CAMS had announced that its board of directors has considered and approved a stock split in the ratio of 1:5.

The shares of Computer Age Management Services (CAMS) appeared to have dropped nearly 80 percent in one single day to open at Rs 791.40 apiece on December 5. This comes as the stock adjusted to a stock split earlier announced by the company.

In reality, the stock fell nearly 2 percent to close at Rs 777 per share. Earlier during the day, the stock fell around 4 percent to hit an intraday low of Rs 758.70 per share.

CAMS stock split:

Earlier in October this year, CAMS had announced that its board of directors has considered and approved a stock split in the ratio of 1:5. It later set December 5 as the record date to determine the eligibility of the shareholders set to receive the payments.

What it means for shareholders?

This means that every share of the company, which has a face value of Rs 10, will be divided into five shares with a face value of Rs 2 each. Shareholders holding the shares of the company as on the record date will be eligible to be part of the scheme.

A company announces stock split to increase the overall liquidity of the stock. While this increases the total number of shares, it does not change the market capitalization of the company. This makes it more affordable for other investors to add to their portfolio, creating strong upside potential for the stock.

CAMS share price history:

CAMS shares have made marginal gains in one week, and rose more than 2 percent in the past one month. The stock is however down nearly 24 percent in 2025 so far, after rising more than 69 percent in the past three years.

The P/E ratio of the stock stands at over 210.

Follow all LIVE updates from the stock markets here.