Ahead of the stock market open next week, market watchers should be aware of ongoing corporate announcements covering interim dividends and stock splits. Hinduja Global and FMCG major Marico will trade ex-dividend next week in respect of the interim dividend declared by both the companies. Whereas, Gujarat Toolroom, KP Energy Ltd, Retan TMT Ltd will start the ex-stock split next week.
The ex-dividend date is when the price of equity shares of a company gets adjusted for dividend payment. This is one or two business days before the record date. All those shareholders whose names appear in the list of the company as on the end of the record date shall be eligible to receive the dividend.
A stock split increases the number of shares outstanding by issuing more shares to existing shareholders. A company engages in a stock split decision to make its stock more affordable if its price level is too high, which will increase the liquidity in the stock.
A) Hinduja Global Solutions Limited: It is a mid-cap company engaged in the business of Knowledge Process Outsourcing (KPO) and Business Process Outsourcing (BPO).
The company has declared third interim dividend 2.5 per share. The company has fixed March 6 as the record date for payment of dividend. The stock will trade ex-dividend on March 6.
This results in a dividend yield of 16.21% at the current share price. The stock had closed up 3.18 per cent on Friday. 1,356.6 on BSE
b) Marico Ltd: FMCG major Marico declared interim dividend 4.50 per equity share to its shareholders.
The company has declared an interim dividend of Rs. 4.5 per share having a face value of 1 each, and the stock will trade ex-dividend on March 8th. The company has also fixed March 8 as the record date for payment of dividend. The dividend will be paid on or before March 28, 2023.
In FY22 alone, Marico paid an equity dividend of 925% in aggregate 9.25 per share to its shareholders. This results in a dividend yield of 1.85% at the current share price. The stock closed up 0.13 per cent on Friday. 499.65 on BSE.
C) Gujarat Toolroom Limited: It is a small-cap company operating in the capital goods industry. The company announced a share split on February 21. since 10 1 i.e. in the ratio of 1:10 and the record date for this has been fixed as March 6, 2023. The stock will be ex-split on March 6.
Gujarat Toolroom shares closed up 0.42 per cent on Friday. 106.65 on BSE. share price climbed 16.30 at the current market price over the last year, resulting in a multibagger return of 544.17%.
D) KP Energy Limited: It is a small-cap business that operates in the power industry. It is a solution provider in the wind energy sector. The company announced a stock split on January 6. since 10 5, i.e. in the ratio of 1:2, and March 10, 2023 has been fixed as the record date for the same. The stock will be ex-split on March 10.
KP Energy shares closed up 1.46 per cent on Friday. 329.15 on BSE. The stock has appreciated 38.60 per cent in last one year and given multibagger returns of 199 per cent during last three years.
I) Rayton TMT Ltd.: The company’s board has approved the stock split. since 10 1 i.e. in the ratio of 1:10 and the record date for this has been fixed as March 10, 2023. The stock will be ex-split on March 10.
Gujarat Toolroom shares closed up 1.85 per cent on Friday. 512 on BSE. In the last six months, Rattan TMT share price has moved from all around from 66.50 512 on the BSE, gaining 669 per cent during the period.
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