Shares of Tata Steel will trade ex-split this week. Record date, important details to know

While announcing its Q4FY22 results in May this year, the company’s board also approved a proposal to split its shares in a 10-to-1 ratio. “The Board considers the proposal for sub-division of 1 equity share of the company with face value” 10/- each of 10 (ten) equity shares having a face value of Rs.1/- each, subject to regulatory/statutory approvals and approval of the shareholders of the company, as may be necessary.”

explaining the logic behind stock split The decision, Tata Steel said, has been made to increase liquidity in the capital market, widen the shareholder base and make shares more affordable to small investors.

A stock split increases the number of shares outstanding by issuing more shares to existing shareholders. A stock split reduces the market value of individual shares, however, the market capitalization of the company does not change.

A company engages in a stock split decision to make its stock more affordable if its price level is too high, which will increase the liquidity in the stock.

Tata Steel It is one of the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world’s most geographically diverse steel producers with a worldwide operation and commercial presence.

Shares of Tata Steel have fallen nearly 27% in the one-year period, while the Tata Group stock has fallen over 17% so far in 2022 (Year-to-date or YTD).

Tata Group chairman Natarajan Chandrasekaran warned earlier this month that the company could be forced to shut down Tata Steel’s plants in Britain without a British government subsidy deal worth around £1.5 billion. Speaking to The Financial Times, the Tata group chief said the company was in talks with the government on its decarbonization plans and a deal would have to be struck by next year to save the country’s steelworks.

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