What is capital reduction, and why did my quantity drop?

What is Capital Reduction, and Why Did My Quantity Drop?

A capital reduction is a corporate action where a company reduces the number of its outstanding shares. This is usually done to restructure finances or improve share value.

When this happens, the number of shares you hold may reduce, but your total investment value stays the same because the average buy price is adjusted automatically.

Example

Before capital reduction: You hold 100 shares at ₹50 each (total value ₹5,000).
After a 1:2 capital reduction, you now hold 50 shares at ₹100 each (total value still ₹5,000).

So, your quantity drops, but the value of your holdings does not change.

Capital reduction only adjusts your share quantity and buy average. It does not affect the overall worth of your investment.

Steps to Track Capital Reduction in FYERS

On FYERS App

  1. Open the app and log in.
  2. Tap Menu (☰) and select Reports → Corporate actions → Capital reduction.
  3. You will see the list of companies where capital reduction has taken place, with details like record date, ratio, holding quantity before and after, and new buy average.

On FYERS Web

  1. Log in to FYERS Web.
  2. Click Menu (9-dot grid) and select Reports → Corporate actions → Capital reduction.
  3. Review the list for details of how your holdings were adjusted.

What If...

SituationWhat to do
My share quantity dropped suddenlyThis is due to corporate actions.
My average price looks wrongIt has been adjusted automatically. Your total value remains the same.
Capital reduction is not visible yetIt may take a few days for the update. Check again under Corporate Actions.

Last updated: 19 Sep 2025

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