Paranovus Entertainment Technology Limited (NASDAQ: PAVS) is making a major change to its capital structure this month. On March 18, 2026, the company’s board of directors officially approved a 1-for-12 reverse share split. This consolidation move is scheduled to take effect when The Nasdaq Capital Market opens for trading on March 31, 2026.

The split will dramatically reduce the number of Class A ordinary shares currently in circulation. Paranovus confirmed that its outstanding shares will drop from approximately 11.3 million to roughly 944,778. Investors holding fractional shares as a result of the math will not be left behind; the company stated that any partial shares will be rounded up to the nearest whole number.

While Paranovus expects its stock to begin trading at roughly 12 times its pre-split price, it has cautioned investors that there is no assurance the price will be maintained. According to reports from Intellectia.AI, PAVS shares experienced a 20% dip immediately following the announcement. The company remains focused on its position within the entertainment technology sector as it navigates these market adjustments.