What is a Stock Split?
A stock split is a company action where a firm splits its current shares into more new shares. The value of an investor’s ownership stays the same; the number of shares and the cost per share are only readjusted.
For instance, in a 2-for-1 forward split, two shares would be given for every one that was held before, with each of the new shares costing half as much as the original price. This is most frequently done by companies with high share prices to make their stock more liquid and accessible to a broader majority of investors.
The history of stock splits reveals that companies often undertake this action after experiencing significant price appreciation. The Tesla stock split and the Google stock split are two of the most famous recent examples of this.
On the other hand, a reverse split gathers a company’s shares, increasing the per-share price. A reverse split is usually taken on by a firm with a low-priced stock in order to comply with listing requirements on a large exchange.
Bharti Airtel’s Financial Health and Past Splits
Bharti Airtel has shown enormous financial growth in recent years. During the fiscal year ending March 2025, the consolidated annual revenue of the company went up enormously to exceed Rs 1.7 lakh crore. There has also been a noteworthy increase in net profit, which was over Rs 33,000 crore.
Although the company is financially sound, it should be noted that the given text does not indicate a stock split in 2025. Yet, a forward stock split was conducted by the company on July 24, 2009. The company also announced a final dividend of Rs 16 per share in May 2025.
The PMGC Holdings Reverse Split
PMGC Holdings, as a strategic action, performed a 1-for-3.5 reverse stock split on September 2, 2025. The move was done mainly to meet Nasdaq’s bid price requirement of $0.10, which a stock needs to continue being listed on the exchange.
After the split, the amount of outstanding shares decreased from about 2.37 million to around 677,000. It is the second reverse split of the company in 2025. Even though reverse splits can carry a stigma of desperation, PMGC has positioned them as a tactical maneuver to stabilize its financial position and attract institutional investors.
TNF Pharmaceuticals and Their Reverse Split
In 2025, TNF Pharmaceuticals declared a reverse stock split, just like PMGC. In order to adhere to Nasdaq’s listing demands, the organization’s board of directors approved a 1-for-100 reverse stock split. On September 2, 2025, the company’s stock will start moving on a split-adjusted basis.
The total number of outstanding shares will reduce from over 178 million to around 1.7 million as a result of the split. Shareholders won’t need to do anything because the change will be automatically recognized in their accounts.
The Bigger Picture
In 2025, both forward and reverse stock splits will be common in the market, but they convey different signals about the state of a company. Forward splits are generally seen as a sign of success, allowing a company to make its stock more affordable after a strong price appreciation.
On the other hand, because reverse splits are usually done to satisfy exchange requirements and prevent delisting, they are frequently seen as a warning sign.
According to a Bank of America Global Research study, since 1980, companies that have announced forward splits have routinely outperformed the S&P 500 in the year that follows the announcement, while reverse splits have had varying results.
In 2025, businesses such as O’Reilly Automotive and Fastenal are executing forward splits following notable expansion, demonstrating this trend. Meanwhile, companies like PMGC and TNF Pharmaceuticals are using reverse splits to address their share price.
The history of the Bank of America stock split history also shows several instances of forward splits, which are a sign of long-term growth.
Conclusion
Both forward and reverse stock splits have occurred in the stock market in 2025. Although these business practices don’t alter a company’s fundamental worth, they serve quite different purposes.
While reverse splits are a calculated strategy to support a company in maintaining its market listing, forward splits are an indication of a robust, expanding business. It’s critical for investors to comprehend the rationale behind a stock split.
In the future, investors should keep an eye on upcoming stock splits to see which companies are performing well. For example, Tesla’s share split was a recent forward split that was a sign of the company’s success.
Furthermore, the Tesla split history shows that the company has used stock splits as a way to make its stock more accessible to a broader range of investors, which is a common practice among high-growth companies.
