Tata Steel Board to Consider Stock Split Proposal; Know What It Means For Investors

Tata Steel Stock Split: Tata Steel Ltd (TSL) in its forthcoming board meeting of the company on May 3 will consider the sub-division of equity shares. The board will consider a proposal to split its equity shares bearing a face value of Rs 10 apiece, the company stated in an exchange filing. Going forward, the Tata Steel board will consider the recommendation of dividends for the financial year ended March 31, 2022, also on the same day.

“A meeting of the board of directors of the Company will be held on May 03, 2022, to consider a proposal for sub-division of the equity shares of the Company having a face value of Rs 10 each, in such manner as may be determined by the board of directors, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the Company,” Tata Steel said in an exchange filing.

Notably, 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. However, the company is yet to specify the ratio of stock split but will most likely give the information after the board approves the proposal on May 3.

Tata Steel Stock Split: What it Means for Investors

Generally, during a stock split, the number of outstanding shares rises while the price per equity share gets cheaper proportionately. Sub-division of shares enables to improve liquidity and further makes the stock affordable for investors.

Tata Steel Stock Split: Shares Surge

At 9:40 am, Tata Steel was quoting at Rs 1,339.60, up Rs 20.35, or 1.54 per cent, on the BSE. The share touched a 52-week high of Rs 1,534.60 and a 52-week low of Rs 854.90 on August 16, 2021, and April 19, 2021, respectively. Currently, it is trading 12.71 per cent below its 52-week high and 56.7 per cent above its 52-week low.

Tata Steel has outperformed the market in the recent past with a wide margin. In the past three months, the stock has rallied 13 per cent as compared to a 5.7 per cent decline in the S&P BSE Sensex. Moreover, over the past year, it has surged 51 per cent as against 17 per cent rise in the benchmark index. It hit a record high of Rs 1,535 on August 16, 2021.

Last month, in its board meeting held in March 2022, Tata Steel had appointed Noel Naval Tata, a trustee on the boards of Sir Ratan Tata Trust and Sir Dorabji Tata Trust, its additional director, and designated him as the vice-chairman.

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