Tata Steel stock split effect: Share price rises over 9%, Nifty Metal index rises over 4%
Tata Steel Stock Split: Tata Steel share price rose for the second day on Friday, jumping over 9% to trade at Rs 109.30 on NSE. Tata Steel is also one of the top gainers of Nifty 50.
The company has fixed July 29 as the record date for share split in the ratio of 1:10, which means shareholders will receive 10 shares for every share held in the demat account. From today, the face value of Tata Steel shares will be Re 1 each. The company is splitting its stake for the first time since January 1996.
At 11:30 am at the time of filing this report, the rally in Tata Steel share price helped Nifty Metal index gain over 4 per cent in today’s session.
Tata Steel Ltd has gained over 23 per cent in the last one month, while the Nifty Metal index has gained 15 per cent and the Nifty 50 index has gained over 8 per cent.
Domestic brokerage firm Motilal Oswal has given neutral rating to Tata Steel.
Earlier this week, Tata Steel posted a consolidated profit of Rs 7,764.96 crore in Q1FY23, down nearly 13 per cent year-on-year (YoY) and 20.4 per cent quarter-on-quarter (QoQ).
Consolidated revenue stood at Rs 63,430 crore, 18.6 per cent year-on-year, but down 8.5 per cent quarter-on-quarter.
Tata Steel was established in 1907. It is one of the top four steel producers in the country and contributes about 18 per cent of the total domestic steel production.