Tourism Finance Corporation To Trade ex-split Tomorrow On Friday

New Delhi, September 18: The shares of Tourism Finance Corporation of India Limited (TFCI) will trade ex-split tomorrow, on September 19. As of the ex-split date tomorrow, investors who want to receive the benefit of the stock split must hold or buy the shares of the company by the end of today’s trading session. The company has set September 19 as the record date, when it will look at its shareholders’ list to determine the shareholders eligible for the stock split.

Tourism Finance Corporation of India Limited (TFCI) is an Indian financial services company that offers a wide range of financial assistance and advisory services to the tourism and hospitality sectors. The company was established on 27th January 1989, with headquarters in New Delhi, India. The shares of the company are listed on NSE with the ticker symbol TFCILTD and on BSE with the code 526650.

Stock Split of 1:5

Tourism Finance Corporation has announced a stock split of 1:5, which means that every share of face value ₹10 will be subdivided into five shares of face value ₹2 each. The paid up share capital of the company remains unchanged at ₹92.59 crore, meaning that there is no dilution of shareholder value. Post split, the number of outstanding shares will rise from 9.25 crore to 46.29 crore.

Understanding Stock Split

A stock split happens when a company decides to increase the number of its shares by dividing each existing share into smaller ones. The idea is to make the share price more affordable for investors, while keeping the overall value of the investment the same.

For Tourism Finance Corporation’s 1:5 stock split, your 1 share will become 5 shares, but to keep the overall investment value the same, the share price goes down on the ex-split date to adjust the share price in proportion to the split ratio.

For example, in a 1:5 split, if you had 1 share worth ₹5,000, after the split, you will get 5 shares worth ₹1,000 each, as the share price will fall to ₹1,000 post adjustment . You now hold more shares, but the total value is still ₹5,000.

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