Tata Investment Shares Extend Rally, Surges Over 10% Ahead Of Stock Split

Tata Investment Corporation Ltd.'s share price rose as much as 10.48% during trade so far to Rs 9,769.5. The scrip rose over 14% in the last week and on Sept. 23 had risen 13.31%, to its 18-month high.

The company had announced the record date of stock split earlier last week, fixing it as Oct. 14. On Aug. 4, the company had announced that it has approved the plan to split its stock in the ratio of 1:10. Accordingly, the stocks of Rs 10 per share face value will be reduced to Rs 1 per share face value.

"Existing 1 (one) Equity Share of face value Rs 10 (Rupees Ten only) each, be sub-divided into 10 (ten) Equity Shares having face value of Rs 1 (Rupee One only) each, fully paid-up," the filing stated.

The rationale behind the stock split is to enhance the liquidity of company's equity shares and to encourage participation of retail investors by making equity shares more affordable, it further said.

The record date determines shareholder eligibility to qualify for the corporate action. Under India's T+1 settlement cycle, shares purchased on the record date itself will not qualify for the stock split. Hence, if the record date is Sept. 22, then shares must be purchased by Sept. 19.

The ex-date, which typically coincides with the record date, marks when the share price adjusts to reflect the share subdivision.

Tata Investment stock rose as much as 10.48% during the day to Rs 9,769.5 apiece on the NSE. It was trading 10.25% higher at Rs 9,749 apiece, compared to an 0.19% advance in the benchmark Nifty 50 as of 12:33 p.m.

It has risen 45.30% in the last 12 months and 44.43% on a year-to-date basis. The total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 52.28. There are no Bloomberg analysts who cover this counter, according to Bloomberg data.