Tata Investment Corp Shares Fluctuate Following 1:10 Stock Split
Tata Investment Corporation implemented a 1:10 stock split on October 14, 2023, leading to significant price volatility. The stock initially fell 3.5% to Rs 908.00 on October 16, with total losses exceeding 12% over two days. However, it later rebounded, gaining over 7% to trade at Rs 1,069.00. The company reported improved financial results, with consolidated profit after tax increasing by 11.6% to Rs 146.30 crore and revenue from operations rising 2.1% to Rs 145.46 crore. Tata Investment Corporation holds strategic stakes in Tata Sons (0.1%) and Tata Capital (2.1%).
*this image is generated using AI for illustrative purposes only.
Tata Investment Corporation shares experienced significant volatility following a 1:10 stock split, with the stock price initially dropping but later showing signs of recovery.
Stock Split Impact
Tata Investment Corporation implemented a 1:10 stock split on October 14, 2023, which had the following effects:
- Split Ratio: Each share with a face value of Rs 10 was subdivided into 10 shares of Re 1 each.
- Initial Price Drop: The stock fell 3.5% to Rs 908.00 on October 16, 2023.
- Two-Day Decline: Total losses amounted to over 12% in two days post-split.
- Recovery: The stock later rebounded, gaining over 7% to trade at Rs 1,069.00.
It's important to note that the stock split creates an optical 90% price drop but does not affect the company's market capitalization or investors' holdings. The primary aim of this corporate action is to enhance affordability and liquidity for retail investors.
Financial Performance
Tata Investment Corporation also reported its recent financial results:
| Metric | Consolidated | YoY Change | Standalone | YoY Change |
|---|---|---|---|---|
| Profit After Tax | Rs 146.30 crore | ↑ 11.6% | Rs 139.22 crore | ↑ 23.5% |
| Revenue from Operations | Rs 145.46 crore | ↑ 2.1% | Not specified | ↑ 21% |
Company Holdings
Tata Investment Corporation holds strategic stakes in key Tata Group entities:
- 0.1% stake in Tata Sons
- 2.1% stake in the recently-listed Tata Capital
The stock split and the company's financial performance reflect Tata Investment Corporation's efforts to maintain its market position while potentially attracting a broader investor base. Investors should consider these developments in the context of their overall investment strategy and risk tolerance.
Historical Stock Returns for Tata Investment Corporation
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.19% | +1.00% | +29.42% | +45.56% | +30.38% | +975.31% |
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