CAMS stock split explained: Share price to see steep fall but investors need not worry

Computer Age Management Services (CAMS) is set to see a sharp drop in share price today, December 5, as the stock turns ex-date for its maiden stock split. The corporate action would split each share of face value Rs 10 into five shares of face value Rs 2 each.

While the company declared seven bonus issues (when unlisted) in the past, the last in 2010, this is its first-ever stock split, data from AceEquity showed. There could be some trading platforms, which may not be reflecting split-adjusted price for Thursday, and thus, may suggest a steep plunge on CAMS today. But stock investors need not worry. 

Stock splits in past few months

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. Mrs Bectors Food Specialities and Neogen Chemicals are scheduled to turn ex-split on December 12.

In the case of CAMS, it provides a comprehensive suite of technology-based services, including transaction origination and execution, payment, settlement and reconciliation, dividend processing, investor interface, record keeping, report generation, intermediary empanelment, brokerage computation and compliance-related services through its pan-India network for mutual fund clients, distributors and investors. The stock got listed in October 2020.

Impact of CAMS stock split 

An existing CAMS 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, making CAMS equity shares more accessible, encouraging a wider retail participation. 

Stock split vs bonus shares 

While stock splits and bonus issues may appear similar, their purpose differs. A stock split divides existing shares into smaller units to enhance liquidity, reducing the face value. While dividend per share adjusts proportionately, the company’s share capital and reserves remain unchanged. A bonus issue, on the other hand, rewards shareholders with additional free shares funded from accumulated earnings, without changing face value.

In a 1:5 split, each share is divided into five, with dividend entitlement shrinking proportionally. In a bonus issue, dividend entitlement remains unchanged. Split shares are typically credited to demat accounts within one to two working days after the record date.

CAMS Q2 results

For the September 2025 quarter, CAMS reported operating revenue of Rs 376.74 crore, up 3.2 per cent year-on-year, and net profit of Rs 114.94 crore, down 5.7 per cent year-on-year. Despite record quarterly revenue, PAT declined due to lower profitability. The board also approved an interim dividend of Rs 14 per share.