Tata Steel said that the board will consider a proposal for a sub-division of the equity shares having a face value of ₹10 each of the company.
Tata Group’s steel manufacturing company, Tata Steel is set to consider a stock split proposal on May 3. Additionally, the company’s board of directors will also look into dividend recommendations for the financial year FY22.
In its regulatory filing on Sunday, Tata Steel stated that a meeting of the board of directors of the company will be held on Tuesday, May 3, 2022.
During the meeting in early May, Tata Steel said that will consider a proposal for a sub-division of the equity shares having a face value of ₹10 each of the company, adding, “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.”
However, Tata Steel did not specify the ratio of stock split but will most likely give the information after the board approves the proposal on May 3.
Generally, during a stock split, the number of outstanding shares rises while the price per equity share gets cheaper proportionately. Sub-division of shares enables to improve liquidity and further makes the stock affordable for investors.
Going forward, the Tata Steel board will consider the recommendation of dividends for the financial year ended March 31, 2022, also on the same day.
Notably, the board will be meeting to consider and take on record the audited Standalone and unaudited Consolidated financial statements and results for the quarter ended March 31, 2022.
On Wednesday (April 13), Tata Steel shares stood at ₹1,319.25 apiece marginally lower compared to the previous closing on BSE. At the current price, the company’s market valuation is over ₹1.61 lakh crore.