Computer Age Management Services Limited (CAMS), a leading technology-driven financial infrastructure and services provider, has announced a proposal for a 1:5 stock split, subject to shareholder approval. The company aims to enhance stock liquidity and make its shares more accessible to a broader range of investors.

Key Details of the Proposed Stock Split

CAMS has issued a postal ballot notice seeking shareholder approval for the following:

1. Subdivision of equity shares
2. Amendment of the Memorandum of Association

The proposed stock split would divide each existing equity share of Rs. 10 face value into five shares of Rs. 2 face value each. This move is designed to make the stock more affordable and potentially increase its trading volume.

Current Stock Performance and Rationale

CAMS has seen significant growth since its initial public offering in October 2020:

The company's management noted repeated requests from shareholders for a stock split, considering the current share price as a "big-ticket size" for Indian equity markets.

Proposed Changes to Share Structure

If approved, the stock split will affect the company's share structure as follows:

Voting Process and Timeline

CAMS has outlined the following schedule for the postal ballot:

• E-voting Period: October 16 to November 15, 2025
• Cut-off Date for Voting Eligibility: October 10, 2025
• Results Announcement: November 17, 2025

Shareholders can cast their votes electronically through the provided e-voting platform.

Impact on Employee Stock Options

The Board has authorized appropriate adjustments to the stock options granted under the Company's Employees' Stock Option Schemes of 2019 and 2024, ensuring fairness to option holders following the stock split.

This corporate action, if approved, could potentially increase the stock's accessibility and liquidity in the market. Shareholders are advised to review the complete postal ballot notice for detailed information before casting their votes.

Computer Age Management Services (CAMS), a leading technology-driven financial infrastructure and services provider, has announced a significant corporate action that could potentially increase the accessibility of its shares to a broader range of investors.

Stock Split Details

CAMS has approved a subdivision of its equity shares, commonly known as a stock split. The details of this corporate action are as follows:

This 1:5 stock split means that each existing equity share with a face value of Rs. 10.00 will be divided into five equity shares, each with a face value of Rs. 2.00. It's important to note that all shares will remain fully paid-up following this subdivision.

Implications of the Stock Split

Stock splits are often implemented by companies to make their shares more accessible to a wider range of investors. While the split doesn't inherently change the company's market capitalization or the total value of an investor's holdings, it can have several potential effects:

1. Increased Liquidity: With more shares available in the market, trading volume may increase, potentially improving liquidity.

2. Broader Investor Base: The lower per-share price might attract more retail investors, potentially broadening the company's shareholder base.

3. Psychological Impact: Some investors may perceive the lower-priced shares as more affordable, even though the company's fundamental value remains unchanged.

It's crucial for investors to understand that while the number of shares they own will increase, the total value of their investment in CAMS remains the same immediately after the split.

Next Steps

Shareholders and potential investors should stay tuned for further announcements from CAMS regarding the record date for this stock split and any other relevant details. As always, it's advisable to consult with a financial advisor before making investment decisions based on corporate actions like stock splits.