Tata Investment Corporation shares staged a strong rally on Friday, hitting a record intraday high of ₹11,847 on the NSE. The stock climbed nearly 12%, marking the fifth consecutive session of gains since September 26.
The surge in momentum coincides with Tata Capital’s upcoming initial public offering (IPO) next week, fueling optimism about potential value creation for shareholders.
Key Trading Highlights
- Stock Movement: Shares surged 11.98% to ₹11,847 intraday but later trimmed early gains to trade at ₹10,075, reflecting high volatility during the rally.
- Five-Day Rally: Tata Investment Corp has gained almost 35% since the announcement of the Tata Capital IPO, signaling strong investor interest.
Strategic Shareholding and IPO Context
Tata Investment Corporation holds a 2.2% stake in Tata Capital, while Tata Sons remains the majority shareholder with nearly 93% ownership. The upcoming IPO of Tata Capital, a non-banking financial company under the Tata Group, is scheduled to open on October 6 and close on October 8. The IPO has been priced between ₹310 and ₹326 per share, valuing the company at approximately ₹1.38 lakh crore at the upper end.
Share Split to Boost Liquidity
Tata Investment Corporation has declared a 1:10 stock split, bringing the face value of each share down from ₹10 to Re 1. The record date for this split is October 14, aiming to enhance liquidity and make the shares more affordable for retail investors.
- Rationale:
- Improves tradability for smaller investors
- Enhances market liquidity
- Aligns with the upcoming Tata Capital IPO
Market Sentiment
Investor confidence has been bolstered by the anticipation that Tata Capital’s IPO could unlock further value for Tata Investment Corporation shareholders. The combination of a five-day rally, record intraday highs, and the share split announcement has created an encouraging environment for both retail and institutional investors.
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