Tourism Finance Corp restructures capital, appoints secretarial auditor

Tourism Finance Corpn. of India (TFCI) has unveiled a series of strategic decisions, including a stock split and the appointment of M/s Arun Kumar Gupta & Associates as its secretarial auditor, effective from FY 2025-26 through FY 2029-30, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The appointment aims to ensure robust compliance and governance practices for the company.

The key highlight is the approved sub-division/split of the company’s existing equity shares. Each share with a face value of INR 10 will be split into five shares, each having a face value of INR 2. This decision will require altering the Capital Clause of the Memorandum of Association and is also contingent upon shareholder approval at the AGM and other necessary regulatory clearances. The record date for the split will be determined later, pending these approvals.

TFCI's authorized share capital remains at INR 5,000,000,000, but will now be divided into 1,250,000,000 Equity Shares of INR 2 each, and 250,000,000 Preference Shares of INR 10 each. The rationale behind the split is to enhance liquidity, improve affordability for retail investors, broaden the shareholder base, foster positive market sentiment, and increase retail participation in TFCI's equity. The board meeting, which commenced at 5:00 p.m. and concluded at 6:30 p.m., signifies a proactive approach by the company to ensure compliance and strategic positioning.