Why Vesuvius India’s Stock Shows a 90% Drop Today: It’s a Stock Split!
If you’re seeing a drastic 90% fall in Vesuvius India’s stock price on your trading app today, don’t panic! It’s not a sudden crash but rather a 1:10 stock split that has taken effect.
What Happened?
Vesuvius India announced in May 2025 that it would split its equity shares in a 1:10 ratio. This means that for every one share of Rs 10 face value you held, you now own ten shares, each with a face value of Re 1. The company set a record date, and only shareholders holding the stock by then are eligible for these new shares.
Why the “Fall” in Your App?
The apparent 90% drop is simply a display anomaly on some trading platforms. Here’s how it works:
- Monday’s Closing Price: Vesuvius India shares closed at Rs 5,899.5 on Monday.
- Tuesday’s Opening Price (Post-Split): On Tuesday, after the 1:10 split, the shares opened at Rs 598 apiece.
Your app might be comparing the unadjusted Monday closing price with the new, adjusted Tuesday opening price, leading to the illusion of a huge decline. It’s important to remember that this doesn’t reflect a loss in your investment value.
Your Investment Value Remains Intact
For shareholders who held the stock before the split, your total investment value remains largely the same. You now own more shares, but each share is priced proportionally lower. For instance, if you had one share worth Rs 5,899.5, you now have ten shares, each worth approximately Rs 598, maintaining your overall investment.
Vesuvius India: A Multibagger on a Growth Path
Despite this temporary display glitch, Vesuvius India has been a strong performer. The stock has surged nearly 700% in the last five years and 18% in the last year alone. The company, a subsidiary of Vesuvius PLC, specializes in manufacturing refractory products and control systems for industrial applications.
Recent reports indicate robust performance, with a 6.14% year-on-year increase in revenue from operations for the quarter ended March 31, 2025. Analysts like B&K Securities are optimistic about its future, citing strong steel production data in India and increased support from its international parent.
So, while the numbers on your screen might look alarming today, rest assured that the 90% drop for Vesuvius India is just a technical adjustment due to its stock split.