Tata Investment Corp. share price: The 1:10 stock split caused the shares to seem to have plummeted by 90%, when in fact, they just adjusted to the company’s actions.
As the stock adjusted to a 1:10 stock split on October 14, it seemed as if Tata Investment Corporation’s shares had plummeted by about 90%. Tuesday’s opening price for the Tata Group company’s shares was Rs 1,042, down from the previous closing price of Rs 9,922 a share.
In August, the business said that its board had authorized a proposal to divide one share worth Rs 10 into ten shares at Rs 1 each. Notably, this was the Tata Group company’s first stock split.
What does it signify for stockholders?
Today, October 14, is the record date that Tata Investment Corp will use to ascertain whether stockholders are eligible to take part in the stock split. This implies that a shareholder who held one share of the business on the record date will have that share divided into ten after the stock split.
To improve the stock’s overall liquidity, a corporation announces a stock split. This raises the total number of shares, but it has no effect on the company’s market valuation. This increases the stock’s upside potential by making it more inexpensive for additional investors to add to their portfolio.
Share price of Tata Investment Corp.: Important information
Tata Investment Corp shares seemed to have plummeted by around 90% as a consequence of the stock split, but in fact, they just adapted to the corporate move. As of 10.40 am, the stock had increased by around 7% to trade at Rs 1,057 per share.