Why has my average price increased due to reverse stock split?

In a reverse stock split, the number of shares you hold decreases, but the value of each share increases proportionally, so the total value of your holdings stays the same. However, since you now own fewer shares at a higher price, your average price per share increases.

Here's how it works:

• If you had 100 shares at ₹10 each, the total value would be ₹1,000.
• After a 1:2 reverse stock split, you would have 50 shares, but each share is now worth ₹20, keeping the total value at ₹1,000.
• Although your total investment hasn’t changed, your average price per share is now ₹20 due to the reverse split.

This increase in the average price is due to the consolidation of shares, not because of any additional payment. The overall value of your investment remains the same.