MCX Stock Split: Why Investors Might See a 5-Fold Increase in Shares Before January (Investor's Guide)

The Multi Commodity Exchange of India (MCX) has announced its first-ever stock split, which could lead to a significant increase in the number of shares held by investors. The company has fixed a record date to determine the eligibility of shareholders for this split.

What is a Stock Split?

A stock split is a corporate action where a company divides its existing shares into a larger number of shares, usually to increase the liquidity of the stock. In this case, MCX will split its shares in the ratio of 1:5, meaning that for every share owned, investors will receive five shares after the split.

Key Facts About the MCX Stock Split

• The record date for the stock split is January 2, which means that only shareholders who own the shares on this date will be eligible for the split.
• The face value of each share will be reduced from Rs 10 to Rs 2 after the split.
• The total worth of an investor's holding will remain unchanged after the stock split, but the number of shares will increase.
• For example, if an investor owns 10 shares of MCX worth Rs 100 each, they will own 50 shares of the company after the stock split, with each share being worth Rs 20.

Why Do Companies Announce Stock Splits?

Companies announce stock splits to increase the overall liquidity of the stock, making it more affordable for other investors to add to their portfolio. This can create strong upside potential for the stock. The market capitalization of the company remains unchanged, but the total number of shares increases.

MCX's Recent Performance

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, with a market capitalization of over Rs 50,895 crore.

Investor Takeaway

Remember, this is a perspective, not a prediction. Do your own research and consider your own financial goals before making any investment decisions. The MCX stock split may present an opportunity for investors to increase their holding, but it's essential to understand the implications of the split and the company's overall performance.