Tata Group stock to consider stock split, dividend next week. Details inside
1 min read . Updated: 29 Apr 2022, 01:45 PM IST
Premium- Tata Steel's board will also recommend dividend, if any, for 2021-22 fiscal
Tata Group's steel manufacturing arm, Tata Steel is set to consider a stock split proposal next week on Tuesday, May 3, 2022. Additionally, the company's board of directors will also look into dividend recommendations for the financial year FY22. The meeting will be held to consider the firm's financial results for the quarter and year ended March 31, 2022.
The board will "consider a proposal for sub-division of the equity shares of the company having a face value of ₹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," Tata Steel had announced in an exchange filing. Besides, the board will also recommend dividend, if any, for 2021-22 fiscal.
A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. Stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.
A company engages in stock split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.
Tata Steel shares have risen about 24% in a year's period, whereas the Tata Group stock has is up more than 12% in 2022 (year-to-date or YTD) so far.
