Tata Investment, an NBFC giant of the Tata Group, is buzzing on BSE and NSE due to its announcement to split its shares in the ratio of 1:10. This will be Tata Investment's first-ever stock split. Over the past three decades, Tata Investment shares have journeyed from Rs 150 levels to crossing Rs 8,000, giving manyfold returns to its investors. A stock split was warranted. But how to be eligible for a stock split?
Tata Investment Share Price:
At the time of writing, Tata Investment stock erased its early gains and traded lower by 0.6% to Rs 7096.10 on BSE, with a market cap of Rs 35,902.93 crore. This is because the broader market sentiment turned bearish after the RBI announced the status quo in policy rates.
In the early trade, Tata Investment shares surged to hit an intraday high of Rs 7,221 apiece, which was less than Rs 854.90 away from reaching its 52-week high of Rs 8,075.90 apiece. Despite the latest correction, Tata Investment is still less than Rs 1,000 away from its record high.
Tata Investment shares have been bullish throughout 2025. Its weekly performance is up by 5%, while its 1-month and 6-month performance is higher by 6% and 19%, respectively. YTD, the stock zoomed by 3-4%.
In the long term, the stock is also a multibagger. Tata Investment shares zoomed by a whopping 820% in 5 years. At the same time, its all-time returns are over 4,420%. Once upon a time, the NBFC stock was merely at Rs 156.67 apiece on July 14, 1995.
Tata Investment Stock Split:
The Tata Group-backed NBFC player has announced a stock split ratio of 1:10. This will be its first stock split in history. The ratio of 1:10 implies that Tata Investment will split 1 existing equity share with a face value of Rs 10 each, into ten smaller shares with a face value of Re 1 each.
The reason behind the stock split is to enhance the liquidity of the Company's equity shares and to encourage participation of retail investors by making equity shares of the Company more affordable.
Tata Investment Stock Split Record Date:
Tentatively, the company aims to complete the stock split plan within 2 months from the date of approval by the shareholders of the company and regulatory or statutory approvals, as per the regulatory filing.
Accordingly, the record date could be announced in less than two months.
How do stock splits work?
According to the Jainam Broking website, the following are the mechanics of a stock split.
Announcement and Record Date: The company announces the stock split and specifies the split ratio and the record date. The record date is when the company identifies shareholders eligible for additional shares.
2. Ex-Split Date: This is the date when the stock starts trading at the adjusted price. On this day, the stock price is automatically adjusted based on the split ratio, and the number of shares held by each shareholder increases accordingly.
3. Stock Price Adjustment: The stock's price is adjusted proportionally to reflect the split.
4. Increase in Shares: Shareholders receive additional shares according to the split ratio. I
5. No Change in Market Capitalisation: The company's market capitalisation (the total market value of the number of shares outstanding) remains unchanged. This is because the increase in the number of shares is offset by the proportional decrease in the share price.
How will the Tata Investment Stock Split impact Investors Portfolio?
Let's test it with an example: For instance, if you hold 100 shares of Tata Investment at Rs 7,500 per share at face value of Rs 10 each. Then, at a 1:10 ratio, the number of shares multiplies to 1,000 shares. While the share price value will reduce to Rs 750 per share, as the face value is trimmed from Rs 10 to Re 1.
However, 100 shares X Rs 7500 = Rs 7,50,000 investment value.
Similarly, 1000 shares x Rs 750 = Rs 7,50,000.
Hence, there will be no immediate growth in wealth when a stock is split. The portfolio of the investor will be adjusted to the split ratio, meaning the number of shares will go up, but the share price value will fall.
The fresh growth emerges over time after the stock split.
During Q1FY26, the company posted a net profit of Rs 146.30 crore, registering a growth of 11.6% from the net profit of Rs 131.07 crore in the same quarter a year ago. On the top-line front, the company posted revenue from operations at Rs 145.46 crore in Q1FY26, which was up by 2.1% compared to Rs 142.46 crore revenue in Q1FY25.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author, GoodReturns.In nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
Click it and Unblock the Notifications
Sign in with Google