Tata Steel share surges 6% after turning ex-date for 1:10 stock split

Tata Steel shares rose 6.36% to Rs 102.05 on the BSE in intraday trade on Thursday after the stock turned ex-date for subdivision of shares in a ratio of 1:10.

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The company has set Friday, July 29, 2022, as the ‘Record Date’ for evaluating the eligibility of shareholders for the purpose of subdividing/splitting every one fully paid-up equity share with a face value of Rs 10 each in the company’s share capital into ten fully paid-up equity shares with face value Re 1 each.

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On May 3, 2022, Tata Steel’s board accepted a proposal to subdivide the company’s equity shares with a face value of Rs 10 apiece to Re 1.

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The purpose of the split is to increase capital market liquidity, broaden the shareholder base, and make shares more accessible to small investors, according to the company.

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A stock split is a business move in which a corporation divides its shares into many new ones. Split shares neither create new value nor decrease the shareholders’ ownership position. They do, however, increase the number of shares in the company.

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Tata Steel was trading 5.46% higher at Rs 100.90 at 12:40 PM, compared to a 1.65% advance in the S&P BSE Sensex. On the NSE and BSE, a total of 72.52 million equity shares had changed hands. Before the stock split, an average of fewer than 7 million shares were traded on the counter in the previous two weeks.