The shares of Tata Investment Corporation appeared to crash nearly 90 percent on October 14, but there’s no need to panic.
The sudden drop was not due to a market crash — it was simply the result of a 1:10 stock split.
On Tuesday, the Tata Group company’s shares opened at ₹1,042 apiece, compared to the previous close of ₹9,922.
The adjustment reflects the new share structure after the split, not a loss in value.
What Is a Stock Split and Why Did Tata Investment Do It?
In August, Tata Investment Corporation announced its first-ever stock split, dividing one share with a face value of ₹10 into 10 shares of ₹1 each.
The goal of a stock split is simple — to make shares more affordable and increase liquidity in the market.
While the total number of shares increases, the overall market capitalization remains the same.
This move helps attract more investors, as the lower share price makes it easier for retail participants to buy into the company.
What It Means for Shareholders
The company set October 14 as the record date to determine who is eligible for the stock split.
This means that if you held one share of Tata Investment Corp on that date, it has now been divided into 10 shares of equal value.
After adjusting for the split, the stock actually rose around 7% and was trading at ₹1,057 apiece by 10:40 AM.
So while the price looks lower, investors’ total value remains unchanged — and potentially stronger in the long run.
Bottom Line
The sharp-looking drop in Tata Investment Corp’s share price is simply a technical adjustment, not a sign of weakness.
With the stock now more accessible to small investors, market experts believe the move could boost liquidity and future demand for the Tata Group company.
