There are a host of corporate actions scheduled for this week. Natco Pharma, Suprajit Engineering, NMDC, and Jupiter Wagons will trade ex-dividend, while The South Indian Bank’s rights issue’s ex-date is fixed this week.
On Monday, 26th February, Fineotex Chemical (Rs 1.2/share), Gateway Distriparks (Rs 0.75/share), Natco Pharma (Rs 1.25/share), Suprajit Engineering (Rs 1.1/share), and Vibrant Global Capital (Rs 1.25/share) will trade ex-dividend. While NMDC (Rs 5.75/share) will trade ex-dividend on Tuesday, 27th February.
Meanwhile, South West Pinnacle Exploration (Rs 0.25/share) and The United Nilgiri Tea Estates Company (Re 1/share) will trade ex-dividend on Wednesday, 28th February. Also, Birla Precision Technologies (Rs 0.05/share), Bodhi Tree Multimedia (Rs 0.5/share), and Jupiter Wagons (Rs 0.3/share) will trade ex-dividend on Thursday, 29th February.
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.
Shares of Rajshree Polypack (2:1) on Monday, DRC Systems India (2:1) on Tuesday, and Fiem Industries (1:1) on Wednesday will go ex-bonus.
A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.
The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
Whereas, the record date for the right issue of The South Indian Bank is fixed on Tuesday, 27th February 2024.
A rights issue is a prevalent form of corporate action where the company invites existing shareholders to buy additional shares in the company at a discounted price within the said period (the cut-off date).
However, as existing shareholders of the company, you do not have an obligation to buy additional shares. If you think the company has a flourishing business, you can apply for the rights issue and increase your stake within the company.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
