The upcoming week, starting Monday, January 12, is set for significant corporate actions on the Indian stock market. Several prominent companies, including Tata Consultancy Services (TCS), will see their shares trade ex-dividend. Furthermore, a host of other firms have announced stock splits and bonus issues, with their shares trading ex-split and ex-bonus on specified dates, as per the Bombay Stock Exchange (BSE) calendar.
Understanding Key Corporate Action Dates
When a company declares a dividend, the ex-dividend date is crucial for investors. On this day, the share price adjusts downward to account for the upcoming dividend payout. From this date onward, new buyers of the stock will not be entitled to receive the declared dividend. The benefit is reserved for shareholders whose names appear on the company's records by the end of the record date.
A stock split is a corporate action where a company increases the number of its outstanding shares by issuing more shares to current shareholders. This is typically done to enhance liquidity by making the shares more affordable, as the price per share decreases post-split. While the number of shares increases, the total market capitalization of the company, and thus the value of an investor's holding, remains the same.
Similarly, a bonus issue involves the company rewarding its shareholders by issuing additional free shares. Like a stock split, this increases the number of shares held without changing the total investment value, as the share price adjusts proportionally.
Stocks Going Ex-Dividend, Ex-Split, and Ex-Bonus
Here is a detailed list of companies and their upcoming corporate action dates that investors should mark on their calendars.
Dividend-Paying Stocks
The following companies have declared interim dividends, with the ex-dividend date set for January 16:
- Jaro Institute of Technology Management and Research Ltd: Interim dividend of ₹2 per share.
- TAAL Tech Ltd: Interim dividend of ₹35 per share.
- Tata Consultancy Services (TCS): Interim dividend (amount as declared).
Stocks Undergoing a Split
Multiple companies will execute stock splits next week:
- SKM Egg Products Export (India) Ltd: Stock split from ₹10 to ₹5. Ex-split date: Monday, January 12.
- Kotak Mahindra Bank Ltd: Stock split from ₹5 to ₹1. Ex-split date: January 14.
- Ajmera Realty & Infra India Ltd: Stock split from ₹5 to ₹1. Ex-split date: January 15.
- Best Agrolife Ltd: Stock split from ₹10 to ₹1. Ex-split date: January 16.
Stocks Issuing Bonus Shares
Two companies will issue bonus shares to their shareholders:
- Authum Investment & Infrastructure Ltd: Bonus issue in the ratio of 4:1 (4 bonus shares for every 1 held). Ex-bonus date: January 13.
- Best Agrolife Ltd: Bonus issue in the ratio of 1:2 (1 bonus share for every 2 held). Ex-bonus date: January 16.
What This Means for Investors
For income-focused investors, the ex-dividend dates for TCS and others are key to ensuring eligibility for the payout. Traders and investors should note that share prices typically see adjustments on these ex-dates. The stock splits by Kotak Mahindra Bank and others aim to improve trading liquidity, potentially attracting more retail participation. Meanwhile, bonus issues are often viewed as a sign of a company's strong financial health and its confidence in future prospects, as it chooses to reward shareholders with additional shares instead of cash.
Disclaimer: This information is for educational purposes only. The views and recommendations mentioned are not those of Mint. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
