Tata Steel shares began trading ex split in a transaction Thursday, one day before the record date of its announced stock split at a ratio of 1:10, which was set for Friday, July 29, 2022 for the purpose of determining shareholder eligibility for the purpose of a stock split. Shares soared more than 3% to Rp99 each in BSE in opening transactions.

While announcing the results of Q4FY22 in May this year, the company’s board also approved a proposal to split its shares in a 10 to 1 ratio. Rp10/- each to 10 (Ten) shares having a nominal value of Re 1/- each.”

Explaining the reasons behind the stock split decision, Tata Steel said it was done to increase liquidity in the capital market, broaden the shareholder base, and make shares more affordable for small investors.

A stock split increases the number of outstanding shares by issuing more shares to current shareholders. Stock splits lower the market price of each share, but do not change the company’s market capitalization.

Earlier this week, steel major Tata Steel posted a 21% drop in consolidated net profit. Rp7,714 crore for the April-June quarter due to higher material and finance costs compared to Rp9,768 crore in the last year quarter.

Total income increased to Rp63,698 crore in the period April-June 2022 against Rp53,627.6 crore year-on-year (YoY). Its expenses, including the cost of materials consumed and finance costs, increased to Rp51,912 crore as opposed Rp41,490.8 crore in the same quarter last year.

Tata Steel and MD TV CEO Narendran said April-June has been a challenging quarter for the global and Indian economies with rising interest rates, supply chain constraints and a slowdown in China due to COVID-19.

Tata Steel is one of the top global steel companies with an annual raw steel capacity of 34 million tons per year. It is one of the most geographically diversified steel producers in the world, with operations and commercial presence worldwide.


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