Synopsis: Tata Investment Corporation shares dropped 90 percent post a 1:10 stock split, reflecting price adjustment; the stock later rebounded 9 percent to Rs. 1,080 amid normalisation after the corporate action.
During Tuesday’s trading session, shares of a non-banking financial company (NBFC) and a subsidiary of Tata Sons Private Limited witnessed a sharp decline of nearly 90 percent on the stock exchanges. What triggered this steep fall? Let’s break it down in this article.
What’s the News
Shares of Tata Investment Corporation Limited witnessed a sharp fall on Tuesday, 14th October, tumbling nearly 90 percent to an intraday low of Rs. 1,015 on the NSE. While the drop appeared steep, it was purely a technical adjustment as the stock traded ex-split following a 1:10 stock split. The Tata Group company’s shares opened at Rs. 1,042 on Tuesday, compared to the previous close of Rs. 9,922 per share.
Back in August, the company’s board had approved the stock split, dividing one share of face value Rs. 10 into ten shares of face value Rs. 1 each, marking the first-ever stock split in the company’s history. The record date for determining eligible shareholders was set for today, 14th October. Accordingly, investors holding one share as of that date would now hold ten shares post-split.
Following the adjustment, Tata Investment’s shares appeared to decline sharply by nearly 90 percent, but in reality, this just reflected the corporate action. In fact, during Tuesday’s morning trading session, the stock rebounded by about 9 percent, reaching an intraday high of Rs. 1,080 on the BSE, with a market cap of Rs. 53,201 crores.
Financials & More
Tata Investment Corp reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 2 percent, from Rs. 142 crores in Q1 FY25 to Rs. 145 crores in Q1 FY26. Likewise, the company’s net profit increased during the same period from Rs. 131 crores to Rs. 146 crores, representing a rise of over 11 percent YoY.
Tata Investment Corporation Limited, a non-banking financial company (NBFC) registered with the Reserve Bank of India under the category of Investment Company, is primarily engaged in the business of investment in listed and unlisted equity shares, debt instruments and mutual funds, etc. of companies in a wide range of Industries.
The company, a Systemically Important Non-Banking Financial Company (NBFC) and a subsidiary of Tata Sons Private Limited, has been classified by the Reserve Bank of India as a middle-layer NBFC.
Written by Shivani Singh
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