Tata Steel (Tata Steel) 7.22% ex-stock split in shares of NSE on Thursday (Stock Split) was done The country’s largest steelmaker split its shares in the ratio of 1:10, each with a face value of Rs. 10 to Rs. 1 did. Tata Steel each Rs. July 29 was fixed as the record date for determining the eligibility of shareholders for the allotment of shares of face value of 10. This means that investors whose accounts have been delivered by June 28 will be eligible for sub-division of shares and the number of shares will be increased by 10 times without changing the amount invested.
The demerger has had a positive impact and Tata Steel’s shares have seen a huge jump. The stock opened on a bullish note on Thursday and once intraday rose over five percent to Rs. reached 102. Later there was a slight decrease in it. Shares of Tata Steel rose 5.05 percent to Rs. was trading at 100.80.
The approval was received from the board on May 3
Giving further information in this regard from the company, it was stated that the board of directors of Tata Steel has approved the stock split proposal on May 3, 2022. In fact, the objective behind the board’s decision is to increase liquidity and make Tata Steel shares more affordable for retail investors.
Understand a stock split like this
A stock split is a process where a company divides its stock into several shares. However, a split share neither adds any new value nor reduces the shareholder’s stake. But, in this way the number of shares of the company increases. With this, the base of shareholders also increases.
Tata Steel’s net profit has declined
In the April-June quarter of the current financial year, Tata Steel’s consolidated net profit fell by 21 percent to Rs. 7,714 crores. Tata Steel gave this information to the stock market. The company said its profit fell due to the increase in costs. Earlier, in the April-June quarter of last financial year, the company posted Rs. 9,768 crore profit was made. In the April-June quarter of the current financial year, the total revenue of the company increased to Rs. 63,698.15 crore as compared to Rs. 53,627.66 crores.
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