MCX shares fall 80% post stock split; here’s why investors should not worry

Shares of Multi Commodity Exchange of India Ltd (MCX) turned ex-split on Friday. At 9.37 am, the stock was trading 2.93 per cent higher at Rs 2,262 apiece. However, many investors may see an apparent 80 per cent fall in the MCX share price on their trading apps.This is because some platforms are displaying Thursday’s unadjusted price, without factoring in the stock split. Investors need not worry, as this is only a technical adjustment.

Under the stock split, each equity share with a face value of Rs 10 has been subdivided into five equity shares with a face value of Rs 2 each. Shareholders holding MCX shares with face value of Rs 10 would receive four additional shares with face value of Rs 2 for every share held, taking their total holding to five shares (with face value of rs 2) post the split.

The stock split is expected to result in a proportionate adjustment in the share price, as one share has been split into five. Such corporate actions typically improve liquidity and affordability, making the stock more accessible and potentially encouraging wider retail participation.

Fundamentals for MCX stayed intact. ICICI Securities, which has 'Add' rating on the stock said, upside risk may arise if commodity option trading continues to receive traction akin to equity, whereas downside risk may stem from reduced volatility-led dip in volumes.

"Additional concerns include any possible issues with the new software, with volume ramp-up, and any regulatory changes that may lead to a decline in volumes. There could also be an upside risk from an increase in volume with the introduction of new products, especially with lower contract size/weekly expiries," it said.

ICICI Securities this week revised its target price on MCX, citing sustained momentum in trading volumes and elevated commodity volatility as key near-term drivers. The brokerage said MCX is witnessing strong positive volume momentum, reflected in robust growth during Q3FY26 and 9MFY26, and expects profit after tax in Q3FY26 to rise nearly 100 per cent quarter-on-quarter.

Stock splits and bonus issues may appear similar, but their objectives differ. A stock split subdivides existing shares into smaller units to enhance liquidity by reducing the face value, without altering the company’s share capital or reserves. Dividend per share adjusts proportionately in the case of a split. A bonus issue, in contrast, involves the issue of additional free shares to shareholders from accumulated earnings, without any change in face value.

In a 1:5 stock split, each share is divided into five and dividend entitlement reduces proportionally, while in a bonus issue, dividend entitlement remains unchanged. Shares arising from a stock split are typically credited to investors’ demat accounts within one to two working days after the record date.