Tourism Finance Corporation Board Approves 1:5 Stock Split

Tourism Finance Corp. of India announced a stock split in the ratio of 1:5, where each equity share of face value Rs 10 will be split into five equity shares of face value Rs 2 each.

The company's board approved the stock split at its meeting held on Thursday, and it is subject to shareholder approval at the upcoming annual general meeting, according to an exchange filing.

The move aims to enhance the liquidity of the equity shares of the company, improve split affordability and accessibility for retail investors and broader shareholder base, positive sentiment and increased retail participation.

The record date for the stock split will be finalised after receiving shareholder and statutory approvals, as per the filing on Thursday.

Tourism Finance is a non-banking financial company that provides financial assistance to projects in the tourism and hospitality sectors across India. The company stated that further disclosures, including the final record date for the split, would be announced in due course.

"Expected time of completion is tentatively within two months from the date of approval of the shareholders of the company and any regulatory approvals, as may be required under applicable law," it added.

After the stock split, Tourism Finance's authorised share capital will remain unchanged at Rs 500 crore, but the number of equity shares will rise from 9.25 crore to 46.29 crore, reflecting the new face value structure. The paid-up equity capital also remains the same at Rs 92.59 crore, ensuring the split is purely a denomination adjustment with no dilution in shareholder value.

Additionally, the board also approved the appointment of Arun Kumar Gupta & Associates as secretarial auditors for a five-year term.

Shares of Tourism Finance Corporation of India rose as much as 2.85% to Rs 292.99 apiece. It pared gains to trade 0.29% higher at Rs 285.69 apiece, as of 10:47 a.m. This compares to a 0.61% decline in the NSE Nifty 50.

It has risen 41.03% in the last 12 months and 72.58% year-to-date. Total traded volume so far in the day stood at 1.47 times its 30-day average. The relative strength index was at 78.38.