Consolidation of shares is also known as Reverse Stock Split. Consolidation of shares is a corporate action where a company reduces the number of outstanding shares by combining the shares and increasing the face value.
Consequently, your holdings in terms of number of shares will go down, and the price will go up in the same proportion, so that the total value of holdings remains the same.
Until the shares are consolidated after the record date, your holdings will show a rise in profits or decrease in losses, since the price has gone up due to the consolidation, while the quantity has not reduced yet. Upon reduction, the profit and loss will be re-adjusted automatically.
There are scenarios where due to the reverse stock split or consolidation of shares, the shareholder could be left with a unit of stock that is less than one full share. These shares are called fractional shares. Since fractional shares don’t trade in markets, the company appoints a trustee to buy them. The trustee then buys back those fractional shares from the investors, and the proceeds are credited to the primary bank account.