Is Pavna Industries share price really down by 90% today? Explained

Pavna Industries stock split: Small-cap stock Pavna Industries' share price reflected an over 90% fall from its last closing price on the National Stock Exchange in trade on Monday, September 1, following the record date for its stock split in the ratio of 1:10.

On NSE, Pavna Industries' share price traded at a low of ₹40.70 apiece. Meanwhile, its last close was ₹413.20. But is the stock down by a whopping 90%? Not really.

In reality, the Pavna Industries share price is down just 1.45%.

Today, September 1, is the record date for the 1:10 stock split announced by Pavna Industries. This means that if an investor held one share of ₹10, they would end up with 10 shares of Re 1.

The total number of shares jumps, but the price per share is adjusted downward, keeping the overall value of the investment the same. So, the 90% drop is not actually a loss in value — it's just a mathematical price adjustment due to the stock split.

So, there is no actual gain or loss — just a change in the number of shares and price per share. After the record date, the original company’s share price adjusts downward to reflect the impact of the stock split.

More to come...

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