What is Face Value & Share Splits on the PSX?
Face value is a share's nominal (par) value, traditionally Rs 10 on the PSX. A share split — formally a sub-division of face value, e.g. Rs 10 to Rs 2 — multiplies the share count and divides the price, without changing the company's worth.
How it works
Splits are usually done to improve affordability and liquidity after a large price run. On the effective date the market price divides by the split ratio, so a 5:1 split turns a Rs 300 stock into five Rs 60 shares.
The trap is historical comparison: EPS, dividends per share, and book value per share reported before the split are on the old share count and must be divided by the ratio to compare with post-split figures — otherwise earnings appear to collapse when nothing changed.
Common questions
Does a share split change what my investment is worth?
No — you hold more shares at a proportionally lower price. Value changes only if the improved liquidity and affordability attract new demand afterwards.
Why does a stock's EPS history look broken after a split?
Pre-split EPS was earned over fewer shares. Divide historical per-share figures by the split ratio (e.g., by 5 for a Rs 10→Rs 2 split) to put the whole history on the current basis.