Tata Investment Corporation Ltd. on Monday, August 4, approved a 1:10 stock split, reducing the face value of its shares from Rs 10 to Rs 1 apiece, according to a regulatory filing. The move aims to enhance liquidity and make shares more affordable for retail investors.
Stock split
In its filing, the company said,“Existing 1 (one) equity share of face value Rs 10 each will be subdivided into 10 (ten) equity shares of face value Rs 1 each, fully paid-up.”
The record date for the stock split will be decided after obtaining shareholder approval, the company added. The entire process is expected to be completed within two months, subject to necessary regulatory and statutory clearances.
The primary rationale behind the split, according to Tata Investment, is to increase market liquidity and enable wider participation from small and retail investors, a common strategy among long-term growth-focused companies.
Tata Investment stock reaction
Following the announcement, Tata Investment shares surged 2.93 per cent to close at Rs 6,981 on the NSE, outperforming the benchmark Nifty, which rose 0.64 per cent. The stock has gained 12.23 per cent year-to-date and 1.85 per cent in the past one year, reflecting stable investor confidence.
Investors lookout
Market watchers advise monitoring the record date and shareholder meeting timeline, especially if regulatory approvals stretch beyond the two-month window.
- Split ratio: 1:10
-
Old face value: Rs 10
-
New face value: Rs 1
-
Reason: Liquidity, affordability, retail participation
-
Record date: Yet to be announced
-
Completion timeline: Within two months of shareholder approval
