The stock market reacted positively to the company's announcement of a board meeting to consider a stock split. This news boosted investor enthusiasm, leading to a significant surge in the company's shares in the first week of July 2025.
Tourism Finance Corporation of India Limited (TFCI), a small-cap company, is once again in the spotlight. On Friday, July 4, 2025, the company informed the stock market that its board would meet on July 10 to consider a stock split proposal. This announcement sparked considerable excitement among investors, resulting in a substantial increase in the company's share price.
On that day, the company's share closed at ₹262 on the NSE, up 8.21 percent. During trading, the share reached a high of ₹264, which is its 52-week high. This represented a significant increase of ₹19.87 in a single day.
Shares with a face value of ₹10 will be split.
The company stated through an exchange filing that it plans to split its equity shares with a face value of ₹10 into smaller denominations. The ratio for this stock split will be decided at the board meeting scheduled for July 10. The purpose of a stock split is to make shares more accessible to retail investors, which often leads to increased trading activity.
In compliance with SEBI guidelines, the company has closed the trading window for its designated persons and insider employees from July 1. This window will remain closed until 48 hours after the announcement of the company's financial results.
The share has already given a 58 percent return in 2025.
TFCI's move comes at a time when its shares are already providing excellent returns to investors. Since the beginning of 2025, the company's shares have increased by 58 percent. During the same period, the Nifty index grew by only 7 percent, indicating that the company has significantly outperformed the average market performance.
Over the past year, TFCI's share has risen by nearly 28 percent, while the Nifty has increased by only 5 percent during this time. Investors and analysts are now focused on the decisions that will be made at the upcoming board meeting.
Market capitalization exceeds ₹2400 crore.
TFCI is a small-cap company with a market capitalization of approximately ₹2,426 crore. It was established in 1989. Initially, the company's goal was to provide financial and advisory services to the tourism sector in India. However, over time, the company expanded its business and now also provides financing to education, healthcare, NBFCs, real estate, and affordable housing projects.
Strong profit in the March quarter.
The company's financial results also support the strength of its shares. In the fourth quarter ending March 2025, TFCI reported a net profit of ₹30 crore, compared to ₹20 crore in the same period last year. This represents a year-on-year profit increase of 48 percent.
In terms of revenue, the company's total income in the March quarter increased by 21 percent to ₹70 crore, compared to ₹58 crore in the same quarter last year. Both TFCI's revenue and profit have seen a significant improvement.
The company is rapidly growing in the financial sector.
TFCI's rapid expansion of its business from the tourism sector to other sectors is a sign of confidence for investors. The company is no longer limited to tourism-related projects but also provides financing to meet the needs of the education and health sectors. Additionally, the company has begun supporting housing projects for the affordable and middle-income segments in the real estate sector.
Stock split will increase investor interest.
The announcement of a stock split is considered a positive sign in the market. It reduces the share price and makes it easier for retail investors to purchase shares. Investors believe that the company's liquidity will increase after the stock split, leading to greater market participation. Therefore, the recent surge in TFCI's share price is seen as a sign of investor confidence.
All eyes are on the board meeting.
All eyes are now on the board meeting scheduled for July 10, where the ratio and process of the stock split will be decided. Market analysts believe that if the board approves the proposal, the company's share will attract even more investors.
TFCI is currently among the select small-cap companies that have not only outperformed the market but have also won the trust of investors through their business strategy and financial strength. The announcement of the stock split has further invigorated it, and there is continued excitement in the market regarding its future trajectory.
