Nuvama Wealth Management Proposes 1:5 Stock Split to Enhance Liquidity

Nuvama Wealth Management Limited has announced a significant corporate action that could potentially increase the accessibility of its shares to retail investors. The company is seeking shareholder approval for a 1:5 stock split through a postal ballot, aiming to enhance the liquidity of its equity shares in the stock market.

Key Details of the Proposed Stock Split

Aspect	Current	Proposed
Face Value per Share	Rs. 10.00	Rs. 2.00
Number of Shares (Post-Split)	1	5
Authorized Equity Shares	79.95 crore	399.77 crore
Authorized Share Capital	Rs. 799.54 crores	Rs. 799.54 crores (unchanged)

Voting Process and Timeline

Voting Method: Remote e-voting
Commencement of E-voting: November 8, 2025, 9:00 AM (IST)
End of E-voting: December 7, 2025, 5:00 PM (IST)
E-voting Platform: Provided by MUFG Intime India Private Limited

Rationale Behind the Stock Split

The Board of Directors believes that this stock split will:

Enhance the liquidity of the company's shares
Encourage greater participation from retail investors
Make the shares more affordable, potentially broadening the shareholder base

Impact on Shareholders

It's important to note that the stock split will not affect the rights and obligations of the existing shareholders. The total value of their shareholding will remain unchanged, although the number of shares they hold will increase proportionately.

Additional Corporate Actions

Along with the stock split, Nuvama Wealth Management is also proposing:

Consequential amendments to the Memorandum of Association to reflect the new capital structure
Adjustments to the company's employee stock option plans to ensure fair treatment of option holders

Next Steps

Shareholders are encouraged to participate in the e-voting process to cast their votes on this important corporate action. The results of the postal ballot will be announced after the voting period concludes.

While the stock split aims to improve market accessibility, investors should note that it does not inherently change the fundamental value of the company. As always, investment decisions should be based on thorough research and individual financial goals.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.06%	+2.94%	+0.27%	+7.79%	+13.08%	+185.65%

Nuvama Wealth Management Limited (NWML) has reported a mixed set of financial results for the second quarter, along with significant corporate actions that could impact shareholders.

Financial Performance

For the quarter ended September 30, NWML reported:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	11.34	10.50	+8.00%
EBITDA	6.20	5.70	+8.80%
EBITDA Margin	54.98%	53.75%	+123 bps
Net Profit	2.54	2.58	-1.60%

Note: All financial figures are in billion Indian Rupees (Rs) unless otherwise stated.

The company's revenue and EBITDA showed healthy year-over-year growth, with EBITDA margin improving by 123 basis points. However, the consolidated net profit saw a slight decline of 1.60% compared to the same quarter last year.

Corporate Actions

Share Split

The Board of Directors has approved a sub-division of the company's equity shares in a 1:5 ratio. This means that each existing equity share with a face value of Rs 10 will be split into five equity shares with a face value of Rs 2 each. The move aims to enhance the liquidity of the company's shares and encourage broader retail investor participation.

Interim Dividend

NWML has declared an interim dividend of Rs 70 per share. The record date for this dividend has been set as November 11, with the payment expected to be completed by December 3, subject to applicable taxes.

Additional Corporate Developments

Rights Issue Investment: The Board has approved an investment of Rs 200 crore towards the subscription of a rights issue by Nuvama Wealth Finance Limited (NWFL), a wholly-owned subsidiary of NWML.
Regulatory Compliance: The company has confirmed that the proceeds from unsecured Commercial Papers issued and outstanding as of September 30 are being utilized as per the stated objectives in the offer document.
Subsidiary Performance: NWFL, a key subsidiary, reported total revenues of Rs 632.68 crore for the year ended March 31, with a net worth of Rs 900.70 crore as of that date.

Market Impact and Outlook

The announced share split is expected to make NWML's shares more accessible to a broader range of investors, potentially increasing liquidity in the stock. The substantial interim dividend of Rs 70 per share signals management's confidence in the company's financial position and commitment to shareholder returns.

While the slight dip in net profit may raise some concerns, the overall growth in revenue and EBITDA, along with margin improvement, suggests that NWML's core business remains strong. The investment in NWFL's rights issue also indicates the company's focus on strengthening its presence in the non-banking financial services sector.

Investors and market analysts will likely watch closely how these corporate actions impact NWML's stock performance and financial metrics in the coming quarters.