Tata Steel stock split impact: Share price jumps over 9%, Nifty Metal index gains over 4%

Tata Steel stock split: Tata Steel share price surged for the second day on Friday, jumping more than 9% to trade at Rs 109.30 apiece on the NSE. Tata Steel is also among the top Nifty50 gainers.  

The company has fixed July 29 as the record date for the share split in the ratio of 1:10, meaning shareholders will receive 10 shares for each share they are holding in the demat account. Starting today, Tata Steel share's face value will be Re 1 each. The company is splitting its share first time since January 1996.

At the time of filing this report at 11:30 am, the rally in Tata Steel share price aided the Nifty Metal index to advance more than 4 per cent in today's session.

Tata Steel Ltd has added over 23 per cent over the last one month as compared to 15 per cent gain in the Nifty Metal index and over 8 per cent rise in the Nifty50 index.

Domestic brokerage firm Motilal Oswal has given Neutral rating on Tata Steel.

Earlier this week, Tata Steel in Q1FY23, posted a consolidated profit of Rs 7,764.96 crore, down by nearly 13 per cent year-on-year (YoY) and 20.4 per cent quarter-on-quarter (QoQ).

The consolidated revenue stood at Rs 63,430 crores up by 18.6 per cent YoY but down by 8.5 per cent QoQ.

Tata Steel was founded in 1907. It is among the country's top four steel producers and contributes around 18 per cent to the total domestic steel production.