The board of Tata Steel will meet on May 3 to consider stock split, the company said in a regulatory filing on Sunday. Also, the company’s board is also likely to recommend a dividend on equity shares for the Financial Year 2022 during the meeting.
Tata Steel said a meeting of the board of directors of the company will be held on Tuesday, May 3. The board will “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,” it said.
Further, the board will “recommend dividend, if any, for the financial year ended March 31, 2022”; “consider and take on record the audited Standalone and unaudited Consolidated financial statements and results for the quarter ended March 31, 2022; and take on record the audited Standalone and Consolidated financial statements and results for the financial year ended March 31, 2022,” the filing said.
The company did not mention the details such as ratio or record date of the stock split.
Tata Steel stock has surged over 5 times after hitting a low in March 2020; stock splits are done to increase liquidity once the price spikes in order to keep the share affordable for new investors. After a stock split the number of shares rise while stock price comes down.
On Wednesday, the last trading day of the previous week, Tata Steel share closed at Rs 1,319.25, slightly higher than previous closing on the Bombay Stock Exchange. The company commands a market capitalisation of over Rs 1.61 lakh crore at current market price of the stock.
