TFCI Announces 1:5 Stock Split to Broaden Retail Investor Access Without Changing Capital Structure
By Shishta Dutta | Published at: Jul 11, 2025 10:05 AM IST
Mumbai, 11 July 2025: In a strategic move to enhance retail investor participation and improve equity share liquidity, Tourism Finance Corporation of India Ltd (NSE: TFCILTD, BSE: 526650) has approved a 1:5 stock split. The resolution was passed during the company’s board meeting held on 10 July 2025. Each existing fully paid-up equity share of ₹10 face value will now be subdivided into five equity shares of ₹2 face value each.
Shares of Tourism Finance Corporation of India Ltd (NSE: TFCILTD) rose by 1.93% in early trade following the company’s announcement of a 1:5 stock split. The stock opened at ₹289.00 and climbed to an intraday high of ₹292.99 by 9:27 am IST, nearing its 52-week high. At 9:28 am IST, the stock was trading at ₹290.37, up ₹5.51 from the previous close, reflecting positive investor sentiment around increased accessibility and expected rise in retail participation
Shareholders’ Nod Required Before Implementation
The proposed sub-division of shares will take effect after obtaining shareholder approval during the upcoming Annual General Meeting, along with necessary statutory clearances. The company has confirmed that the record date for the split will be communicated separately once approvals are secured.
No Change in Paid-Up or Authorised Capital Post-Split
The share split will not impact the total authorised or paid-up capital of the company. Only the number of shares and their face value will undergo changes. The structure post-split remains aligned with regulatory requirements.
| Particulars | Pre-Split | Post-Split |
|---|---|---|
| Equity Share Capital | 25,00,00,000 shares of ₹10 each | 125,00,00,000 shares of ₹2 each |
| Preference Shares | 25,00,00,000 shares of ₹10 each | 25,00,00,000 shares of ₹10 each |
| Total Authorised Cap | ₹500 crore | ₹500 crore |
Issued, Subscribed and Paid-Up Share Capital
| Particulars | Pre-Split | Post-Split |
|---|---|---|
| Equity Shares | 9,25,95,448 shares of ₹10 each | 46,29,77,240 shares of ₹2 each |
| Total Equity Capital | ₹92,59,54,480 | ₹92,59,54,480 |
Stock Split Aimed at Boosting Liquidity and Retail Participation
According to TFCI’s regulatory filing, the primary purpose of the stock split is to increase share liquidity and make the shares more affordable to retail investors. By reducing the face value and increasing the number of outstanding shares, the company aims to make its stock more accessible, which could potentially broaden its investor base.
Shareholders’ Rights to Remain Unaffected
The company clarified that the stock split will not affect the class or rights of existing shareholders. Every shareholder will benefit from the subdivision, and no one will be excluded from the process.
Process Expected to Conclude Within Two Months of Approvals
TFCI stated that the full execution of the stock split is expected to be completed within two months following all necessary approvals. This timeline ensures adequate time for regulatory and procedural formalities.
About TFCI: A Key Financial Enabler in Tourism Sector
Tourism Finance Corporation of India Ltd is a Non-Banking Financial Company (NBFC) that provides financial assistance to the tourism and allied infrastructure sectors. The company is listed on both the National Stock Exchange and the Bombay Stock Exchange.
REF: https://nsearchives.nseindia.com/corporate/TFCILTD_10072025184308_TFCIOutcomeBM1072025Signed.pdf
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