Indian steel maker Tata Steel Ltd is set to consider a proposal to split the stock and also recommend a dividend, the company confirmed in a statement.
A meeting set for May 3rd will consider a sub-division of the shares with a nominal value of 10 Indian rupees each. The ratio of the proposed stock split is unconfirmed.
“A meeting of the board of directors of the Company will be held on May 03, 2022, to consider a proposal for sub-division of the equity shares of the Company having a face value of Rs 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 said in an exchange filing.
The move is planned to improve liquidity and make the stock more affordable for investors, and would be subject to regulatory and statutory approvals.
Tata steel has outperformed the market over the past 12 months, rising at three times the rate of the S&P BSE Sensex. The company’s positive performance over the past three months has been even more notable, rising by 13% whilst the benchmark index has declined overall.
The company will also announce results for the quarter ended March 31st on May 3rd, Tata Steel confirmed.