MCX shares crack 80% in early trade, but here’s why investors need not panic
MCX shares plunged over 80% to Rs 2,192 as the stock turned ex-split on its record date for a 5:1 split, a mechanical price adjustment rather than a fundamental decline, with eligible shareholders set to receive additional shares.
Shares of Multi Commodity Exchange (MCX) nosedived over 80% on Friday, falling to an intraday low of Rs 2,192 on the BSE, against their Thursday’s closing price of Rs 10,988.60. However, there is no reason for the investors to worry as the stock just turned ex-split.
The sharp drop, coming on the record date for its 5:1 stock split, may have caught some investors off guard, but the correction is more mechanical than meaningful.
Friday, January 2, marks the official record date for MCX’s first-ever stock split, a corporate action that has been in the spotlight since it was first announced in September 2025. Starting today, the stock is trading ex-split, meaning only those who bought shares on or before January 1 will be eligible to receive the additional shares arising from the sub-division.
Post the split adjustment, the shares of MCX eventually rose 3.6% from their intraday low of Rs 2,192 to their day’s high of Rs 2,271.
Under the approved plan, each equity share of face value Rs 10 is being split into five shares of Rs 2 each. So, an investor holding 10 shares pre-split will now hold 50, with the price per share adjusting accordingly.
The total value of the investment remains unchanged, but the lower price per share is expected to improve affordability and liquidity in the stock.
While the fall on Friday may seem unsettling at first glance, it is largely a function of short-term profit booking and technical adjustments. The stock had rallied in the lead-up to the corporate action as investors positioned themselves to benefit from the split. The post-split drop, therefore, is part of the usual script that plays out around such events.
The fundamentals remain intact, and the split is aimed at attracting more retail participation by making the stock more accessible. As the dust settles, MCX’s move could well pave the way for stronger volumes and wider investor interest in the sessions ahead.
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