Shares of Tata Investment Corporation Ltd. are trading with gains of over 7% in trade on Tuesday, on the back of a 10:1 stock split.
The company's shares opened at Rs 1,042 per share in trade, compared to Monday's closing price of Rs 9,922. It is, therefore, entirely possible that some trading apps may not show the adjusted share price after the split.
The stock is currently trading at Rs 1,061, reaching an intraday high of Rs 1,070.
Tata Investment's shares have split from a face value of Rs 10 each into shares with face value of Re 1 each.
A stock split takes place in order to increase liquidity on a counter. The mechanism works by splitting already available shares into shares of smaller face values, which is why the stock price of Tata Investment was showing a 90% drop earlier in trade.
Tata Investment Corporation's stock split comes at a busy time for the Tata group, with the entire Dalal Street keeping a close eye on Tata Motors demerger.
Tuesday is the record date for the demerger, with both NSE and BSE hosting a special pre-open session between 9 a.m. to 10 a.m.
The shares of Tata Motors' ex-CV entity will be tradable for retail investors from 10 a.m. onwards, once the price of the entity is discovered.
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