Tata Group stock surges 25% in two sessions after fixing record date for stock split

Shares of Tata Investment Corporation Ltd., a Tata Group holding company, surged as much as 12% on Wednesday, September 24, extending the 12% advance that the stock had seen on Tuesday. The stock though, saw a marginal cool-off towards the close of trade.

At the day's high, the stock had risen as much as 25% in two trading sessions.

On Monday evening, Tata Investment announced that it has fixed October 14 as the record date for its stock split, which it had announced earlier.

Tata Investment will be splitting one equity share currently having a face value of ₹10 into ten shares with a face value of ₹1. This will be the first and only stock split that the company will be carrying out.

The stock surged on very high volumes on Wednesday. As many as 36.4 lakh shares of the company changed hands, in comparison to the 20-day average of 1.6 lakh shares.

With this move, the stock is now up 30% in September, making it the best month of the year so far, and this is also the quantum by which the stock has surged so far on a year-to-date basis.

The stock has delivered negative annual return only once in the last 10 years. The stock is up nearly 10x in the last five years, having begun 2020 at a price of close to ₹900.

Shares of Tata Investment Corporation ended 7.2% higher on Wednesday at ₹8,721, having made an intraday high of ₹9,099.5.