Tata Coffee surges as board approves stock split

The stock up 5% to Rs 1,023 on BSE after the company said its board approved 1:10 stock split.

Tata Coffee has surged 5% to Rs 1,023 on BSE in otherwise weak market after the company said its board approved splitting the company’s equity shares of face value Rs 10 each into 10 equity shares of face value Re 1 each.

“The board of directors of the company at its meeting held on November 25, 2014, has approved the stock split proposal of company's equity shares from the existing face value of Rs 10 per equity share to Re 1 per equity share subject to the approval of company's shareholders,” Tata Coffee said in a statement.

Stock split or sub-division of equity shares is done to infuse liquidity and to make shares affordable for retail investors who could not invest earlier because of the high stock price.

The stock opened at Rs 994 and touched a high of Rs 1,030 on BSE.  The counter has seen huge trading volumes with a combined 414,380 shares changed hands in first 20 minutes of trade against an average sub 500,000 shares that were traded daily in past two weeks on NSE and BSE.