Tata Investment Corporation Ltd. has approved the plan to split its stock in the ratio of 1:10, according to an exchange filing on Monday. 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 record date for the same is yet to be announced and will be decided as per the approval of the shareholders of the company, the filing added.
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 stock split is expected to be completed within two months from the date of approval of the shareholders of the company, "and any regulatory/ statutory approvals, as may be required under applicable law", the filing noted.
Shares of Tata Investment settled 2.93% higher at Rs 6,981 apiece on the National Stock Exchange following the announcement, compared to a 0.64% advance in the benchmark Nifty. The share price has risen 1.85% in the last 12 months and 12.23% on a year-to-date basis.
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