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Stock Splits in January 2023

06 January 20236 mins read by Angel One
Stock Split is good news for potential investors as it lowers the stock price and improves liquidity in the capital market. Three Indian corporations have announced share splits in January 2023
Stock Splits in January 2023
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

A stock split occurs when a company splits its shares in a specified ratio to increase stock liquidity. The company may decide to split shares when it starts to look expensive. Stock split lowers the price per share. But it is also good news for investors. 

What is a stock split?

Companies split stocks when the stock price has risen to a point where it has become unattractive to most investors. Share Split increases the number of outstanding shares by specific multiples. However, it is helpful to understand that the total value of the outstanding share remains unchanged and split stocks don’t impact the company’s value.   

Companies can decide to split stocks in any multiple. However, 2-for-1 (or 2:1) or 3-for-1  (or 3:1) splits are most common. It means that the shareholders will have 2 or 3 shares for each share they had before the split. 

Suppose a company’s shares were trading at Rs 50 a year ago and it has now increased to Rs 100. If the company announces a stock split at 2:1 it will allot one additional share (quantity-wise) for each stock held by the investor. It doesn’t impact the holding size of the investor, but share prices come down to Rs 50 again.

A stock split doesn’t affect your shareholding pattern or percentage and the company’s total market capitalisation also remains unchanged. So, you might wonder, how the stock split is good news for you. 

It is exciting for any investor to know that the price of the stocks in their portfolio has increased enough to require a stock split. It indicates that the company is growing. Split stocks help lower the price level comfortably for most investors, encouraging more investor participation and subsequently price appreciation.

Investors aren’t better or worse off due to the splits. But they must understand the impact of share splits on outstanding market orders, dividend payouts, and capital gain tax. 

  • If you are short-selling or trading options, your order size will automatically adjust to neutralise any impact on your investment. 
  • Share split will not increase the total dividend payable. The company will only consider fully paid stocks before the record date for paying dividends. 
  • Investors will now have to adjust their capital gain/loss basis to the new price of the share as it changes after the split.

As we have seen the effect of stock split, let’s find out which companies have announced stock splits in January 2023. Here is a list of companies with upcoming stock splits. 

List of Upcoming Stock Split in January 2023

Sl No

Company Name 

Old FV in ₹

New FV in ₹

Announcement Date


Vishnu Chemical



January 13, 2023


Rajnish Wellness



January 10, 2023


Supreme Petrochem



January 06, 2023

Vishnu Chemicals 

In the last twelve months, Vishnu Chemicals’ share price has gained 72.31%. The multibagger company has announced to split their stocks in a 1:5 ratio or one share of face value ₹10 to five shares of ₹2 FV. 

Vishnu Chemicals shares were trading at the price of ₹1473.35 per share. The stock split will increase the liquidity of Vishnu shares in the capital market.

Market cap: ₹1,772 crore

P/E Ratio (TTM): 14.48

Industry PE: 13.03

Profit in 2022: ₹81.39 crore

Rajnish Wellness 

Rajnish Wellness is the second company on the list of upcoming stock splits in January 2023. The company stocks have surged 650% in 2022. 

Rajnish Wellness has split the face value two times since July 2022. This time they have announced a stock split of 1:2. All eligible shareholders will have two shares with a face value of ₹1 per equity share. The record date for the Rajnish Wellness stock split is January 10, 2023.

Market cap: ₹1,216 crore

P/E Ratio (TTM): 524.09

Industry PE: 59.49

Profit in 2022: ₹0.39 crore

Supreme Petrochem

This is the first time Supreme Petro will slip the face value. The record date to determine shareholders’ eligibility for the stock split is decided on January 06, 2023. The company has also announced a 100% dividend of ₹4 per share for FY23.  

Supreme Petro is an Indian petrochemical company that primarily manufactures polystyrene, expandable polystyrene, masterbatches and compounds of styrenes and polymers, and others.  

Market cap: ₹7,495 crore

P/E Ratio (TTM): 11.74

Industry PE: 13.03

Profit in 2022: ₹663 crore

Also Read: What Is Stock Split: Why Companies Split Their Stocks?

Final words 

In the electronic age, most of the adjustments are done automatically. Hence, like for bonus shares, additional split stocks will get credited directly to your Demat account in 4-5 business days. 

Now that you know about the upcoming stock splits, you may consider buying them. However, you must research well before you buy. If you are a first-time investor, Open Demat account with one of the registered Indian stockbrokers.   

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.

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