Shares of Mini Diamonds (India) Ltd crashed nearly 80% on Tuesday, December 2, falling to Rs 28.70, and triggering confusion among investors. The sharp decline, however, is not due to any negative news, financial stress, or business-related development. Instead, the fall is purely because the stock is trading ex-split today.
On December 2, Mini Diamonds turned ex-split, meaning the stock price has been adjusted downward in line with the company’s recently announced 1:5 stock split. This adjustment makes the share price appear significantly lower, even though the value of investor holdings remains unchanged.
Why the stock fell nearly 80%
Mini Diamonds has approved a 1:5 stock split, where every 1 share of face value ₹10 is subdivided into 5 shares of face value ₹2 each.
This type of corporate action reduces the market price proportionally while increasing the number of shares, ensuring that shareholder wealth stays intact.
Because the split ratio is 1:5, the share price naturally adjusts to about one-fifth of its earlier value — which, visually on the market screen, shows up as a steep fall.
This is exactly why today’s price shows a 79–80% drop.
Ex-split and record date
The company set December 2 as both the ex-split date and the record date.
Investors who held the stock at market close on December 1 are eligible to receive the additional shares.
About Mini Diamonds
Mini Diamonds (India) Limited operates in the gems and jewellery sector, dealing in natural and lab-grown diamonds and finished jewellery. Founded in 1987 and headquartered in Mumbai, the company operates an integrated model across the value chain.
What investors should understand
A stock split does not change:
-
market capitalisation
-
total investment value
-
business fundamentals
It only makes shares more affordable and increases liquidity in the market.
