The move aims to improve liquidity, enhance affordability for retail investors, and broaden the shareholder base. As per the company’s filing with the stock exchanges, the record date for the stock split will be finalized after receiving shareholder and statutory approvals, and the process is expected to be completed within two months.
After the stock split, Tourism Finance’s authorized share capital will remain unchanged at Rs 500 crore, but the number of equity shares will rise from 9.25 crore to 46.29 crore, reflecting the new face value structure. The paid-up equity capital also remains the same at Rs 92.59 crore, ensuring the split is purely a denomination adjustment with no dilution in shareholder value.
A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost liquidity. While the total market capitalization remains unchanged, the number of outstanding shares increases, and the price per share decreases proportionally. Stock splits are typically used by companies whose share prices have increased significantly, making them less accessible to smaller investors.
Tourism Finance, a non-banking financial company (NBFC), provides financial assistance to projects in the tourism and hospitality sector across India. Headquartered in New Delhi, it plays a significant role in supporting travel infrastructure, including hotels, resorts, and entertainment facilities.
In the same meeting, Tourism Finance board also approved the appointment of Arun Kumar Gupta & Associates as secretarial auditors for a five-year term. The company stated that further disclosures, including the final record date for the split, would be announced in due course.