Did Tata Investment Corporation shares crash 90%? Here's the reality
What's the story
Shares of Tata Investment Corporation plummeted by 90% on Tuesday, October 21, hitting a low of ₹1,015 on the NSE. The massive drop may look concerning at first glance, but it's purely optical due to the stock trading ex-split after its 1:10 stock split. The company had announced that each equity share of face value ₹10 would be split into 10 shares of face value ₹1 each.
Market reaction
Stock split boosts liquidity, attracts retail investors
The record date for the stock split was set as October 14. Investors who held the stock till Monday's closing bell were eligible for the split. The stock had closed at ₹9,949—up 7.04% in the previous session—but opened lower on Tuesday due to the adjustment, trading around ₹1,056 in early deals. Despite this price drop, Tata Investment Corporation's market capitalization and investor holdings remained unchanged post-split.
Investor strategy
Impending deadline for Tata Sons listing adds to buzz
The stock split has increased the number of outstanding shares, making them more affordable and improving liquidity. This move is often aimed at attracting more retail investors. The company's plans have drawn investor attention, especially with the impending deadline for Tata Sons—India's largest conglomerate's holding company—to become a publicly listed entity.
Listing implications
Deadline for Tata Sons listing approaches
According to RBI norms, upper-layer NBFCs have to list within three years of notification, with September 30 as the final date. Tata Sons had applied for NBFC registration in 2024 but the central bank's last communication in January 2025 indicated that the deadline still stands. A successful listing could unlock significant value for Tata Investment Corporation and strengthen its balance sheet.
Financials
Strong Q2FY25 numbers boost investor sentiment
Despite holding just 0.1% in Tata Sons, Tata Investment Corporation reported an 11.6% year-on-year rise in its consolidated profit after tax (PAT) last month. The PAT stood at ₹146.30 crore, up from ₹131.07 crore in the previous year period. Its revenue from operations also rose to ₹145.46 crore from ₹142.46 crore in Q1FY25—a 2.1% YoY increase—while standalone net profit surged by 23.5%.