Bharat Dynamics Announces Dividend and 2:1 Stock Split

The Board of Directors of Bharat Dynamics (BDL), a Government of India Enterprise engaged in the manufacturing of guided missiles and allied defence equipment, announced a dividend and a stock split of the company’s shares during the meeting held today.

Dividend

The company’s Board of Directors declared an interim dividend of Rs 8.85 per share of Rs 10 each, fully paid-up, for the FY24. The Board of Directors has set April 2, 2024, as the “Record Date” for the purpose of payment of Interim Dividend on equity shares for the FY24, with the payment to be completed on or before April 18, 2024.

Stock Split

The board also approved the sub-division or stock-split of the existing 1 equity share with a face value of Rs 10 each, fully paid up, into 2 equity shares with a face value of Rs 5 each, fully paid up, subject to shareholders’ approval.

The record date for the purpose of the above sub-division or stock split of equity shares will be determined after obtaining approval from the shareholders through the postal ballot electronic voting process and will be communicated in due course.

Approximately 2 to 3 months from the date of shareholders’ approval, the stock split is expected to take effect.

The stock split is being pursued for several key reasons. Firstly, it aligns with DIPAM Guidelines on Capital Restructuring. Secondly, it aims to foster wider participation from small investors, promoting broader participation in the company’s shares. Lastly, the split is anticipated to bolster the liquidity of the Equity Shares in the Stock Market.

Share Performance

At the beginning of the day, the shares of BDL opened at Rs 1656 per share on the BSE, reaching intraday highs and lows of Rs 1684.75 and Rs 1654, respectively. The shares eventually concluded at Rs 1661.55 per share, representing a gain of 2.58% compared to last day’s closing price.

The 52-week high of the stock is Rs 1984.40 per share, and currently, the stock is trading approximately 16.30% below its 52-week high price. The stock has delivered around 83% return in the past year.

The current market capitalisation of Bharat Dynamics Limited stands at Rs 30,453 crore.

Investors must keep these stocks on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.