MCX fixes record date for 1:5 stock split: What it means for shareholders?

MCX stock split

The Multi Commodity Exchange of India (MCX) has announced its first-ever stock split in the ratio of 1:5, and has fixed the record date to determine the eligibility of the shareholders.

The shares of the company were trading nearly flat with marginal losses at Rs 1,006.45 apiece in the morning of December 18, as seen at 9.50 am.

MCX announces stock split:

In an exchange filing released in the post-market hours of December 17, MCX announced that it has fixed January 2 as the record date for the stock split.

This comes after the company in September announced that its shareholders have approved the company’s plan to divide every share with a face value of Rs 10 each into 5 equity shares with a face value of Rs 2 each.

What it means for shareholders?

If a shareholder owns 10 shares of MCX worth Rs 100 each, he will own 50 shares of the company after the stock split, with each share being worth Rs 20. However, the total worth of his holding will remain unchanged at Rs 1,000 after the stock split. Hence, the stock may appear to have substantially reduced in value, but in reality they would simply adjust to the stock split.

Only those shareholders who own the shares of the company as on the record date will be eligible for the scheme, meaning that each of the shares they own will get divided into five shares after the stock split takes effect.

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.

MCX share price history:

MCX shares have gained more than 3 percent in the past one month, and over 25 percent in the past six months. The stock is up over 58 percent in 2025 so far.

The company's market capitalisation currently stands at over Rs 50,895 crore.

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