Tata Group’s steel manufacturing entity, Tata Steel is
set to consider a stock split proposal on May 3. The company’s board will also
decide on dividend recommendations for the financial year 2021-22.

In an exchange filing on Sunday, Tata Steel stated that a
meeting of the board of directors will be held on Tuesday, May 3, 2022.

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During the meeting, the board of Tata Steel Ltd will
consider a proposal to split its equity shares bearing a face value of Rs 10
per share. The decision will be subject to regulatory, statutory and
shareholder approvals.

However, the company did not specify the ratio of stock
split but is expected to give the information after the board approves the
proposal on May 3.

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Stock splits generally increase the number of outstanding
shares while reducing the price per equity share proportionately. Sub-division
of shares helps to improve liquidity and makes the stock more affordable for
investors. At the same time, the company’s market capitalization and the value
remain the same since there is no issuance of additional shares.

Additionally, the Tata Steel board will consider the
recommendation of dividends for the financial year ended March 31, 2022, during
the meeting.

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The board will be meeting to consider and take on record
the audited Standalone and unaudited Consolidated financial statements and
results for the quarter ended March 31, 2022.

Share of the company had surged significantly with a
series of acquisitions and the sharp spike in steel prices across the globe
following the Russia-Ukraine war.

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On April 13, Tata Steel shares closed at Rs 1,319.25 per
share marginally lower compared to the previous closing on BSE. At the current
price, the company’s market valuation is more than Rs 1.61 lakh crore.