Tata Steel board to meet on May 3 to consider stock split, dividend
- Tata Steel is set to consider a stock split proposal on May 3
- Decision will be subject to regulatory and shareholder approvals
- It will consider the recommendation of dividends for the financial year 2022
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.
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.
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.
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.
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.