Ahead of the opening of the stock market next week, market watchers should be aware of ongoing corporate announcements covering interim dividend and stock splits. Hinduja Global and FMCG major Marico will trade ex-dividend next week with respect to the interim dividends announced by both companies. While, Gujarat Toolrooms, K.P. Energy Ltd, Rhetan TMT Ltd will turn ex-stock split next week.
The ex-dividend date is when the price of the equity shares of a company gets adjusted for the dividend payout. It is one or two working days before the record date. All the shareholders whose names appear in the company’s list by the end of the record date will be eligible to receive dividends.
A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. A company engages in stock split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.
a) Hinduja Global Solutions Ltd: 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 of ₹2.5 per share. The company fixed 6 March as the record date for the purpose of payment of the dividend. The stock will trade ex-dividend on 6 March.
At the current share price this results in a dividend yield of 16.21%. On Friday, the stock closed 3.18 per cent up at ₹1,356.6 on BSE
b) Marico Ltd: FMCG major Marico declared an interim dividend of ₹4.50 per equity share for its shareholders.
The company has declared an interim dividend of ₹4.5 per share having a face value of ₹1 each, and the stock will trade ex-dividend on 8 March. The company has also fixed 8 March as the record date for the purpose of payment of the dividend. The dividend will be paid on or before March 28, 2023.
In FY22 alone, Marico had paid an equity dividend of 925% aggregating to ₹9.25 per share to its shareholders. At the current share price this results in a dividend yield of 1.85%. On Friday, the stock closed 0.13% per cent up at ₹499.65 on BSE.
c) Gujarat Toolroom Ltd: It is a small-cap company that operates in the capital goods industry. The company on 21 February, announced stock split from ₹10 to ₹1 i.e., in 1:10 ratio, and fixed 6 March, 2023 as the record date for it. The stock will turn ex-split on 6 March.
On Friday, the shares of Gujarat Toolroom closed 0.42 per cent up at ₹106.65 on BSE. The stock price climbed from ₹16.30 to the current market price over the past year, resulting in a multibagger return of 544.17%.
d) KP Energy Ltd: It is a small-cap business that operates in power industry. It is a solution provider in the wind energy sector. The company on 6 January, announced stock split from ₹10 to ₹5, i.e., in 1:2 ratio, and fixed 10 March, 2023 as the record date for it. The stock will turn ex-split on 10 March.
On Friday, the shares of KP Energy closed 1.46 per cent up at ₹329.15 on BSE. The stock has appreciated 38.60 per cent over the past year and a multibagger return of 199% during the past three years.
e) Rhetan TMT Ltd: The company board has approved stock split from ₹10 to ₹1 i.e., in 1:10 ratio, and fixed 10 March, 2023 as the record date for it. The stock will turn ex-split on 10 March.
On Friday, the shares of Gujarat Toolroom closed 1.85 per cent up at ₹512 on BSE. In last six months, Rhetan TMT share price has risen from around ₹66.50 to ₹512 on BSE, logging to the tune of 669 per cent rise in this period.