Did this L&T-backed AI stock actually crash 90% in one day? Here's all you need to know

Shares of E2E Networks adjusted to its 1:10 stock split on Friday, appearing to have crashed nearly 90% in just one session.

After closing at Rs 4,313.60 apiece on Thursday, the stock opened at Rs 452.90 apiece on Friday. In reality, the stock jumped 5% to hit the upper circuit, despite appearing to have significantly reduced in value.

The company in April this year had announced plans to split one equity share with a face value of Rs 10 into 10 shares of Rs 1 each, translating into a 1:10 split.

What this means for shareholders?

If a shareholder owns one share priced at Rs 100, a 1:10 stock split will convert it into 10 shares priced at Rs 10 each. The total value of the holding remains unchanged at Rs 100. Once the stock begins trading ex-split, the price may appear significantly lower, but this simply reflects the adjustment following the corporate action.

Only shareholders who hold the stock as of the record date will be eligible for the stock split. Companies typically announce stock splits to improve liquidity. While the number of outstanding shares increases, the company’s overall market capitalisation remains unchanged. A lower share price can make the stock more accessible to retail investors, potentially improving participation and trading volumes.

E2E Networks shareholding pattern

Promoters held a 39.45% stake in the smallcap company, according to data on the firm’s shareholding pattern as on March 31, 2026. Engineering and infrastructure major Larsen & Toubro (L&T) owned 18.45% stake. L&T had initially picked up its stake through a preferential allotment and later increased its holding via secondary market purchase.

E2E Networks offers cloud computing platforms powered by CPU and GPU infrastructure, catering to large-scale general computing as well as AI workloads, with support from its association with NVIDIA. The company also maintains strategic partnerships with global OEMs, including NVIDIA, Intel, AMD, Microsoft and Dell.

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E2E Networks share price

E2E Networks shares jumped 16% in one week, 52% in one month and are up nearly 127% in 2026 so far, adjusting for the stock split. In the longer term, the shares of the company have gained over 61% in one year, a whopping 2,620% in three years and 10,193% in five years.

The company currently has a market capitalisation of Rs 9,310 crore.

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