Tata Investment Corp Stock Split: Last Chance to Buy Shares Before Record Date

Tata Investment Corp. will be on the market radar on Monday as it marks the last session for investors to buy shares to qualify for the stock split ahead of the record date. The company has announced a 1:10 stock split, which means one existing fully-paid up equity share of face value Rs 10 each will be sub-divided into 10 equity shares having face value of Rs 1 each, as per the board’s plan.

Understanding the Stock Split

A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly. While the number of shares increases, the total investment value remains unchanged. For more information on stock splits and their impact on investors, check out our detailed guide.

Record Date and Ex-Date

The company has fixed Tuesday, Oct. 14, as the record date for the purpose of determining the equity shareholders eligible for the stock split. Only those investors who hold Tata Investment Corp shares in their demat account as of this record date will be eligible for the bonus allotment. Under India’s T+1 settlement cycle, investors must buy the shares at least one trading day before the record date to be eligible. This means that purchases made on the record date itself will not reflect in the demat account in time.

On Tuesday, Tata Investment shares will also trade ex-date. That means the share price will adjust to the stock split. To understand how to navigate ex-date trading, visit our resource page for expert insights.

Tata Investment Corp Performance

Shares of Tata Investment settled 3% higher at Rs 9,295 apiece on the NSE on Friday, compared to a 0.4% advance in the benchmark Nifty. The stock has risen 32% in the last 12 months and 36% on a year-to-date basis. For the latest Nifty news and updates, follow our daily market analysis.

Tata Group Holdings

Tata Sons, together with other Tata companies, holds 73.38% of the paid-up equity capital of Tata Investment Corp, a non-banking financial company. The company’s activities comprise primarily of investing in long term investments in equity shares, debt instruments, listed and unlisted, and equity related securities of Tata Group companies in a wide range of industries. The major sources of income of the company consist of dividend, interest and profit on sale of investments. To learn more about Tata Group companies and their investment strategies, check out our in-depth analysis.

Investor Sentiment

The stock split announcement has generated significant interest among investors, with many looking to capitalize on the potential increase in liquidity. However, it’s essential for investors to understand the implications of a stock split on their investment portfolio. For expert advice on investing in the Indian stock market, visit our investor education section.

Conclusion

In conclusion, the Tata Investment Corp stock split presents an opportunity for investors to reassess their portfolio and consider the potential benefits of increased liquidity. However, it’s crucial to approach this development with a clear understanding of the underlying factors driving the stock’s performance. By staying informed and up-to-date with the latest Indian stock market news, investors can make informed decisions and navigate the markets with confidence.