Share Split: TFCIL announces 1:5 stock split, record date 19 September

Tourism Finance Corporation of India (TFCI) has announced a major corporate action – a stock split in 1:5 ratio to enhance liquidity and make the stock more accessible to retail investors.  Under this move, every existing share with a face value of ₹10 will be divided into five shares of ₹2 each. Shareholders recorded on the same date, September 19, will be eligible to receive the additional shares 

Stock Split Details

• Split Ratio: 1:5 Current  
• Face Value: ₹10 per share  
• New Face Value: ₹2 per share  
• Record Date: September 19  
• Ex-Split Date: Friday (upcoming) 

This corporate action's record date is September 19, 2025. You will automatically qualify for the split if you own shares of TFCI on this date. You don't need to take any further action. 

What Is a Stock Split? 

A stock split happens when a company divides its existing shares into multiple new shares, giving shareholders more shares while keeping the total investment value the same. For TFCI, the 1:5 split will raise the total number of shares from around 9.25 crore to 46.29 crore. This doesn’t change the overall worth of anyone’s holdings but makes the stock more affordable and easier to trade, especially for retail investors. 

Impact on Shareholders 

Let’s say you currently hold 100 shares of TFCI at ₹350 each before the split. 

Pre-Split Holdings: 

• Number of shares: 100
• Share price: ₹350
• Total investment value: 100 shares * ₹350/share = ₹35,000 

Post-Split Holdings:

• Number of shares: 100 shares * 5 = 500 shares
• New share price: Approximately ₹350 / 5 = ₹70
• Total investment value: 500 shares * ₹70/share = ₹35,000 

After the split, the overall value of your holdings will remain unchanged. The adjustment in share price reflects the increased number of shares, maintaining the total investment value.

It's also crucial to remember that the stock price will change to reflect the split on the ex-date. Therefore, even though there might seem to be a decline in unrealised profit, this is only a short-term issue that will be resolved once the new shares are credited.

You must ensure your shares are in dematerialized form and held in the demat account by the record date to be eligible for the split. Purchases made on or after the ex-split date will not qualify for the benefit. 

Impact on Share Structure

Here’s an overview of  the impact of the stock split on TFCI's share structure: 

While the number of outstanding shares will increase, the company's paid-up capital of Rs 92.59 crore will remain the same. This action prevents any dilution of shareholder value, even with the rise in the share count. 

To sum up

This corporate action by TFCIL is aimed at increasing the stock's liquidity and making it more appealing to a broader base of investors. The resulting decrease in share price is expected to facilitate greater trading volume in the future.