Panic gripped investors Tuesday as Tata Investment Corporation Ltd shares opened at Rs 1,042 on NSE, down a shocking 90% from Monday's close of Rs 9,922. Social media buzzed with fears of a corporate meltdown, but experts quickly clarified: it's no crash, just a routine 1:10 stock split effective today. The face value dropped from Rs 10 to Re 1 per share, multiplying holdings tenfold while keeping overall value intact. Adjusted for the split, the price aligns perfectly—no losses, just higher liquidity for retail traders.
Tata Investment, a key Tata Group arm, manages a diverse portfolio of quoted and unquoted securities, with heavy stakes in giants like Tata Power, Tata Steel, and Trent. Tata Sons controls 68.51%, while other group firms hold another 4.87%, totaling 73.38% ownership. The NBFC focuses on long-term value and growth, boasting zero debt and strong Q1 FY26 profits up 11.6% to Rs 146.3 crore on dividend gains. This split aims to make shares more affordable, boosting trading volumes amid a 48% rally since September.
Post-split, authorised capital jumps from 6 crore Rs 10 shares to 60 crore Re 1 shares. Issued shares rise from 5.06 crore to 50.6 crore, and paid-up from 5.06 crore to 50.6 crore—purely cosmetic changes. Unlike bonus issues, which add free shares from reserves without altering face value, splits only tweak share count and price. Dividends stay unaffected, as total equity remains the same.
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The confusion stemmed from unadjusted prices on some trading apps, misleading users into thinking disaster struck. "It's a classic split surprise—value unchanged, but optics scare newbies," said market analyst Rajiv Singh. With the stock up 227% in two years, this move could draw more small investors. No tax hits shareholders now; only future sales trigger capital gains, with adjusted acquisition costs.
As trading stabilizes, Tata Investment eyes further gains from Tata Sons' potential listing and Tata Capital's October IPO. Investors holding through the record date (today) now own 10 times more shares at one-tenth the price— a smart play for liquidity without dilution. The episode underscores stock splits' role in democratizing markets, though apps must update faster to avoid needless jitters.
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