2 weeks ago
TD Power Systems Shares Fall 50% After Stock Split Adjustment
TD Power Systems decided to split each share into two smaller shares.
Each old share worth ₹2 becomes two shares worth ₹1 each.
This means an investor with one share will have two shares.
The apparent 50% price drop does not necessarily mean investors lost half their money.
The share price adjusts because the number of shares doubles.
The company said the split is intended to make shares easier to buy and trade.
TD Power Systems also reported strong growth in profit, revenue, and orders during the June 2026 quarter.
Two brokerages continued to recommend buying the stock.
The article gives conflicting figures for the stock’s one-year performance, reporting both a 300% gain and a nearly 40% gain.
TD Power Systems set August 24, 2026, as the record date for splitting each ₹2 share into two ₹1 shares.
The stock opened at ₹780.10, nearly 50% below its previous close of ₹1,534.15, because of the 1:2 share subdivision.
Shareholders holding one eligible share will receive one additional share, while the total investment value is expected to remain unchanged.
The company reported a 72.2% year-on-year rise in June-quarter net profit to ₹86.3 crore and a 72% revenue increase to ₹640 crore.
Brokerages Anand Rathi and Phillip Capital retained buy ratings, with pre-split target prices of ₹1,751 and ₹1,800, respectively.
- Who
- TD Power Systems and its shareholders; Anand Rathi and Phillip Capital also issued views on the stock.
- What
- TD Power Systems carried out a 1:2 subdivision, or stock split, of its ₹2 equity shares into two ₹1 shares.
- Where
- The share-price adjustment occurred on the stock market and was reported through an exchange filing.
- When
- The record date was set for August 24, 2026; August 21 was identified as the last buying day for eligibility.
- Why
- The split aims to improve share liquidity and affordability after the stock’s sharp rise.
Corporate-action explanation
Investor and market interpretation
Meaning of the price fall
Corporate-action explanation
The nearly 50% decline reflects the mechanical adjustment caused by doubling the number of shares through the 1:2 split; the article says the investment value should not change.
Investor and market interpretation
The sharp lower displayed price may appear to investors as a major loss, particularly in trading apps, even though eligible shareholders receive an additional share.
Future outlook
Corporate-action explanation
Anand Rathi and Phillip Capital remained positive, assigning buy ratings and pre-split targets of ₹1,751 and ₹1,800.
Investor and market interpretation
The stock’s valuation and future performance remain subject to market trading, while the article notes that only limited brokerage firms track the company.
Key facts
- Record date
- August 24, 2026
- Stock split ratio
- One ₹2 share became two ₹1 shares
- Opening price
- ₹780.10, versus ₹1,534.15 previously
- Market capitalization
- Approximately ₹24,000 crore
- June 2026 net profit
- ₹86.3 crore, up 72.2% year over year
- June 2026 revenue
- ₹640 crore, up 72% year over year
- Brokerage targets
- Anand Rathi: ₹1,751; Phillip Capital: ₹1,800, both on a pre-split basis
Sources
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