Computer Age Management Services Announces 1:5 Stock Split to Enhance Liquidity
Computer Age Management Services Limited (CAMS) has approved a 1:5 stock split, subject to shareholder approval. The split will change the face value of shares from Rs. 10 to Rs. 2, increasing the number of shares from 4,95,30,127 to 24,76,50,635. This move aims to enhance liquidity, improve affordability for retail investors, broaden the shareholder base, and potentially generate positive market sentiment. The process is expected to be completed within two months of receiving necessary approvals. The company will also amend its Memorandum of Association to reflect these changes.

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Computer Age Management Services Limited (CAMS), a leading technology-driven financial infrastructure and services provider, has announced a significant corporate action that could potentially increase its stock's accessibility and liquidity in the market.
Board Approval and Shareholder Consent
The Board of Directors of CAMS has approved a stock split in the ratio of 1:5, subject to shareholder approval. This decision will subdivide each existing equity share with a face value of Rs. 10 into five shares with a face value of Rs. 2 each. The company will seek shareholder approval through a postal ballot for this corporate action.
Impact on Share Structure
The proposed stock split will have a substantial impact on the company's share structure, as outlined in the table below:
Particulars | Pre-Split | Post-Split |
---|---|---|
Face Value | Rs. 10 | Rs. 2 |
Number of Shares | 4,95,30,127 | 24,76,50,635 |
Authorized Shares | 5,12,50,000 | 25,62,50,000 |
Paid-up Capital | Rs. 49,53,01,270 | Rs. 49,53,01,270 |
Rationale Behind the Split
CAMS has cited several reasons for this corporate action:
- Enhanced Liquidity: The split aims to increase the liquidity of the company's equity shares in the stock market.
- Improved Affordability: By reducing the face value, the stock becomes more affordable for retail investors.
- Broader Shareholder Base: The company expects to attract a wider range of investors, potentially expanding its shareholder base.
- Positive Sentiment: The split may generate positive sentiment and increase retail participation in the stock.
Timeline and Implementation
The company expects to complete the stock split process within two months of receiving necessary approvals, including shareholder consent and any required regulatory clearances. The record date for the split will be announced after obtaining shareholder approval.
Memorandum of Association Amendment
As a consequence of the stock split, the Board has also approved alterations to the company's Memorandum of Association, specifically to the Capital Clause. This amendment will also require shareholder approval through the postal ballot.
Investor Implications
While the stock split does not inherently change the company's market capitalization or the total value of an investor's holdings, it can potentially make the shares more accessible to a broader range of investors. However, investors should note that stock splits do not directly impact the fundamental value of the company and should consider their investment decisions based on comprehensive financial analysis and individual investment goals.
As CAMS moves forward with this corporate action, market participants will be keenly watching for the shareholder vote results and subsequent implementation of the stock split, which could influence trading patterns and liquidity in the coming months.
Historical Stock Returns for Computer Age Management Services
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.19% | +1.12% | +0.22% | +0.92% | -15.92% | +195.47% |