Tata Steel shares rise for the second day after share sharing

The company had fixed Friday, July 29, 2022 as the record date for its stock split for the purpose of determining the eligibility of shareholders for the purpose of sub-division of its equity shares or stock split,

Declaring its Q4FY22 results in May this year, Tata SteelThe board also approved a proposal to split its shares in the ratio of 10 to 1. “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.”

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.

Explaining the reason behind the share split decision, Tata Steel said it has been done to increase liquidity in the capital market, widen the shareholder base and make shares more affordable for small investors.

Earlier this week, domestic steel major Tata Steel reported a 21% fall in its consolidated net profit 7,714 crore for the April-June 2022 quarter (Q1 FY23) due to higher cost of material and finance cost 9,768 crore in the year-ago quarter.

its total income increased 63,698 crore in the period April-June 2022 as against 53,627.6 crore year-on-year (YoY). In a separate statement, the company said its consolidated steel production stood at 7.74 million tonnes (MT) in the first quarter of FY23, down 1.77 per cent from 7.88 MT in the same quarter a year ago. The company’s sales also fell to 6.62 MT in the teh quarter from 7.11 MT in April-June FY22.

Part of the Indian conglomerate Tata Group, Tata Steel is one of the top four steel producers in the country and contributes about 18% of the total domestic steel production.

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