Nuvama Wealth Management Limited has successfully completed its 1:5 stock split, with the sub-divided shares now credited to depositories under a new ISIN code. The company informed stock exchanges on December 30, 2025, that the corporate action has been fully implemented following shareholder approval through postal ballot.

Stock Split Implementation Details

The stock split has been executed with confirmation from both major depositories in India:

Voting Process and Approval Timeline

The stock split received shareholder approval through a comprehensive e-voting process:

Corporate Structure Changes

The completed stock split has resulted in significant changes to the company's share structure:

Depository Confirmation Process

Both National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) have issued confirmation letters regarding the successful processing of the stock split. The sub-divided shares have been credited under the new ISIN code INE531F01023, replacing the previous ISIN.

Strategic Benefits Realized

The Board of Directors' objectives for the stock split included:

• Enhanced liquidity of company shares in the market
• Increased accessibility for retail investors
• Broader shareholder base through more affordable share prices
• Maintained shareholder rights and proportional ownership

Impact on Existing Shareholders

Shareholders will see their holdings multiplied by five while maintaining the same total investment value. The stock split does not affect existing rights and obligations, with all shareholders receiving proportional increases in their share count. Employee stock option plans have also been adjusted to ensure fair treatment of option holders following the corporate action.

Motilal Oswal Financial Services has identified a significant shift in India's banking landscape, where public sector banks are aggressively reclaiming market share in MSME and home loans from private lenders. Despite this competitive pressure, the brokerage maintains that HDFC Bank, ICICI Bank, State Bank of India and AU Bank remain the most critical investment picks as the credit cycle transitions into a more disciplined, execution-focused phase.

PSU Banks Dominate MSME Lending

Public sector banks have emerged as the dominant force in MSME lending over the past six to nine months, fundamentally altering competitive dynamics. Channel checks across direct loan selling agents reveal PSU banks are now sanctioning MSME and working-capital loans with remarkable speed.

PSU banks are leveraging CGTMSE-backed structures for loans up to ₹50.00 crores without collateral requirements, while repo-linked pricing has significantly narrowed rate differentials versus private banks. This central government push to scale MSME credit has accelerated PSU bank execution capabilities.

Private Banks Adapt Strategy

Private banks are recalibrating their approach, with most now favouring hybrid MSME structures that combine partial CGTMSE cover with collateral to limit unsecured exposure. Among private lenders, ICICI Bank and HDFC Bank remain most competitive, supported by low funding costs and superior underwriting capabilities.

Housing Sector Resilience

The housing and real estate segment maintains momentum with improved disbursement rates and strong activity among large developers. PSU banks are regaining relevance in home loans through lower rates, faster processing, and normalised DSA commissions of 0.80-1.20%. This strategy is particularly effective in Tier-2 and Tier-3 cities, while private banks continue dominating premium borrower segments.

Credit Cards and Personal Loans Stabilise

Credit card growth remains subdued with selective issuances, though early stress indicators are stabilising despite elevated delinquency levels compared to historical norms. Personal loans show early stabilisation signs with completed pricing corrections and improved affordability, though lenders avoid aggressive volume chasing.

Investment Outlook

Motilal Oswal expects the credit cycle to settle into a sustainable, execution-led phase with systemic loan growth likely maintaining around 12.00% year-on-year in FY26. The brokerage favours lenders with strong execution capabilities, stable asset quality, and diversified growth drivers, specifically recommending ICICI Bank and HDFC Bank for growth compounding abilities, State Bank of India for steady execution and scale, and AU Bank for robust growth prospects.