MCX board approves its first-ever stock split in 1:5 ratio

Multi Commodity Exchange of India Ltd. on Friday approved a plan for a stock split in the ratio of 1:5, according to an exchange filing.

This is the company's first-ever stock split. The stocks of ₹10 per share face value will be reduced to ₹2 per share face value.

"To enhance stock affordability, making it more accessible to retail investors, MCX Board approved stock split of 1:5 ratio, i.e. face value of ₹10 per share reduced to ₹2 per share fully paid up, subject to statutory and regulatory approvals as applicable, and approval of shareholders of the company", the filing stated.

The stock split was announced by the company along with its financial results for the quarter ended June.

Record date for the stock split has not been disclosed.

Companies generally carry out a stock split to make it easier for shareholders to buy or sell their shares, as it increases the liquidity in the stock. A stock split divides a company's stock into more shares, lowering the price and increasing the number of shares available to trade.

MCX has not issued bonus shares to its shareholders either, but has been a regular distributor of dividends annually.

The company has already fixed August 8 as the record date for the ₹30 per share dividend that it announced recently.

Previously, the company had paid dividends worth ₹7.64, ₹19,09 and ₹17.4 per share across 2024, 2023 and 2022 respectively, according to data available on the BSE.

Ahead of the announcement., shares of MCX closed at ₹7,599.50, down 1.22% today on NSE. The stock has risen 22% on a year-to-date basis.