A major update from the stock market has caught investors’ attention. South India’s well-known FMCG company KSE Limited has announced a 1:10 stock split. This means one equity share with a face value of ₹10 will now be split into 10 shares of ₹1 face value each.
What Is the Benefit of a Stock Split?
A stock split is a corporate action in which a company divides its existing shares into smaller units. The purpose is to increase liquidity so that small investors can easily buy and trade the stock.
However, it is important to remember that a stock split does not change the company’s total market capitalization or the investor’s total investment value. Only the number of shares increases while the price per share decreases proportionately.
Example:
| Split Ratio | Shares Before | Shares After | Total Investment Value |
|---|---|---|---|
| 1:10 | 1 share @ ₹1000 | 10 shares @ ₹100 | ₹1000 (unchanged) |
What Does KSE Limited Do?
KSE Limited (Kerala Solvents Extractions Limited) is a reputed FMCG company in South India. It manufactures:
- Edible oils
- Dairy products
- Animal feed
Under its brand, the company sells milk, curd, ghee and ice cream across various markets.
Record Date and Eligibility
The company has set 28 October 2025 as the record date for the stock split.
- Investors whose names appear in the company’s records till 27 October 2025 will receive the split shares.
- The decision was approved during the company’s 61st AGM held on 20 September 2025.
- From 28 October onward, the stock will trade on an ex-split basis, which means the share price will adjust as per the new split ratio.
Share Price Update
As of 11:48 AM on the BSE, KSE Limited’s stock was trading at ₹263, down around 2.54% from the previous close.
After the stock split, the share price will adjust downward, making it more affordable for retail investors.
What Do Market Experts Say?
Analysts believe that the stock split could increase trading volumes and improve the stock’s market participation. However, they also emphasize that a stock split changes only the number of shares, not the company’s value.
Conclusion
KSE Limited’s 1:10 stock split is an important update for investors. The move is expected to enhance liquidity and improve accessibility for small investors. Still, investors should conduct their own research before making any investment decisions.
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