Nuvama shares: Why this multibagger stock is showing up to 80% in some trading apps today

Nuvama shares stock split: Mutlibagger financial solutions player Nuvama Wealth Manager might be showing up to 80 per cent fall in some trading apps today as all these the shares turned ex-split, adjusting to the pre-announced corporate action. Nuvama had announced to issue subdivided stocks for the eligible shareholders in 1:5 ratio, which is indicating a sharp downside in its price.

It means all the shares of Nuvama, with a face value of Rs 10 each, shall be split or subdivided into five shares with face value of Rs 2 each as of today. Investors having Nuvama shares in their demat account shall be eligible for this corporate action and the stock price shall be adjusted in the same ratio, that is, 1:5. From today, subdivided or adjusted shares shall be traded.

"We wish to inform you that the company has fixed Friday, December 26, 2025, as the record date for the purpose of determining the eligibility of members for the sub-division/split of one equity share of face value of Rs 10 each into five equity shares of face value of Rs 2 each as approved by the members of the company on December 7, 2025," said Nuvama in a filing.

Shares of Nuvama Wealth Management opened at Rs 1522.65 on Friday, signaling a nearly 80 per cent fall from its previous close at Rs 7,613.35 on Wednesday. The total market capitalization of the company stood close to Rs 27,700 crore mark. The indicated fall was due to the 'subdivision' of its equity shares in 1:5 ratio. However, the stock was seen at Rs 1,520 in early trade, mostly flat.

An existing Nuvama investor holding one share would receive four additional shares, taking the holding to five. The corporate action would trigger a sharp price adjustment on the counter, as the stock split converts one share into five. The corporate action would improve liquidity and affordability.

Wednesday, December 24 was the last day to buy Nuvama shares to become eligible for the aforesaid corporate actions as Friday marks the record date for it. The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the corporate action. The move aims to increase stock liquidity and affordability for retail investors.

What makes stock splits attractive for investors is that they come free of cost. The impact of a bonus issue is straightforward: it increases the number of shares in circulation, which trims down the company’s free reserves and lowers earnings per share (EPS). As a result, the stock price adjusts downward. There is, however, no dilution of equity.

Nuvama Wealth Management was listed on Dalal Street in September 2023, after the company was spun-off and listed separately from Edelweiss Financial Services. The stock has surged more than 215 per cent from its demerger. For the quarter ended on September 30, Nuvama reported a net profit of Rs 46.35 crore with a revenue of Rs 187.73 crore.

Brokerage firms are mostly positive on the stock. JM Financial and Motilal Oswal Financial Services have a 'buy' rating on Nuvama Wealth Management with a target price of Rs 8,300 and Rs 9,100 respectively. Bernstein gave it an 'outperform' rating with a target price of Rs 9,790.

To recall, Mrs Bectors Food Specialities, Bharat Rasayan, BEML, Fineotex Chemicals, Adani Power, Zydus Wellness, Rolex Rings, Tata Investment Corporation and Paras Defence are among the dozens of stocks that have undergone splits in recent months. Caspian Corporate Services and Multi Commodity Exchange of India (MCX) shall trade ex-split next week.