The shares of Tata Steel will start trading ex-split on Thursday, this week. The company has announced a stock split in the ratio of 1:10 and the record date has been fixed as July 29, 2022.
The company’s shares have dropped 26.01% in the past year and by 15.94% as per year-to-date data.
“The Board considered the proposal for sub-division of 1 equity share of the Company having face value of ₹10/- each into 10 (Ten) equity shares having face value of Re 1/- each, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the company,” the company said in May this year while announcing the quarterly results for Q4FY22.
Tata Steel said that the stock split would enhance the liquidity in the capital market, widen the shareholder base and make the shares more affordable for the shareholders.
A stock split increases the number of outstanding shares by issuing more shares to the shareholders. At the same time, it decreases the market price of individual shares. However, the market capitalization of the company remains unaffected.
Tata Steel is one of the top steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world’s most geographically diversified steel producers, with operations and commercial presence across the world.
Written By Simran Bafna
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