Corporate Actions in Focus: Dividends, Stock Splits, and Bonus Issues

This week on Dalal Street is packed with shareholder-centric events, including dividends, stock splits, and bonus share issuances. Several major companies, such as Tata Consultancy Services (TCS), Kitex Garments, and Jai Balaji Industries, have planned key corporate actions aimed at rewarding shareholders and improving market liquidity. Here’s a detailed breakdown of what’s in store.

Dividend Announcements

Next week, many prominent companies will trade ex-dividend, which means their share prices will adjust to exclude the value of the declared dividend payouts. Here are the details:

Trading Ex-Dividend on January 16, 2024

• CESC Ltd: CESC has declared an interim dividend of ₹4.5 per share for its shareholders.
• PCBL Ltd: PCBL’s shareholders will receive an interim dividend of ₹5.5 per share.

Trading Ex-Dividend on January 17, 2024

Tata Consultancy Services (TCS)

• TCS has announced an interim dividend of ₹10 per share.
• Additionally, a special dividend of ₹36 per share has been declared, further enhancing shareholder returns.

Vantage Knowledge Academy Ltd

• •  Vantage Knowledge Academy has declared an interim dividend of ₹0.1 per share, reflecting its commitment to sharing profits with its investors.

Stock Splits

Stock splits are corporate actions that aim to increase share liquidity by reducing the face value of existing shares. This adjustment often makes the shares more affordable and accessible to a broader range of investors. The following companies have announced stock splits for next week:

Trading Ex-Split on January 13, 2024

• Shardul Securities Ltd: The face value of shares will be reduced from ₹10 to ₹2, effectively increasing the number of shares in circulation.

Trading Ex-Split on January 16, 2024

• Regis Industries Ltd: The company will undergo a stock split, reducing the face value from ₹10 to ₹1 per share.

Trading Ex-Split on January 17, 2024:

• Arunjyoti Bio Ventures Ltd: This company will execute a stock split, reducing the face value from ₹10 to ₹1 per share.
• Jai Balaji Industries Ltd: The company has announced a stock split that will lower the face value of shares from ₹10 to ₹2.

Bonus Issues

A bonus issue is a corporate action where companies distribute additional shares to their existing shareholders at no additional cost. This is often done to improve liquidity and enhance shareholder value. The following companies have declared bonus issues for next week:

Effective January 17, 2024

• • Kitex Garments Ltd: Shareholders will receive bonus shares in a 2:1 ratio, meaning two additional shares for every one share held.
  • Sattva Sukun Lifecare Ltd: The company will issue bonus shares in a 3:5 ratio, providing three additional shares for every five shares held.

Other Corporate Actions

In addition to dividends, stock splits, and bonus issues, other significant corporate actions are scheduled for the coming days. These include rights issues and income distributions:

January 14, 2024

• GTT Data Solutions Ltd: The company has announced a rights issue of equity shares, providing existing shareholders with an opportunity to buy additional shares at a discounted price.
• Energy Infrastructure Trust: This trust will carry out an income distribution, rewarding its investors.

January 15, 2024

• California Software Co Ltd: The company has scheduled a rights issue of equity shares to raise additional funds from existing shareholders.

January 16, 2024

• Ultracab (India) Ltd: Shareholders can participate in the company’s rights issue of equity shares.

These corporate actions reflect the companies’ efforts to reward their shareholders and enhance market engagement. Investors who hold shares by the record date will be eligible to benefit from these announcements, making this a crucial week for market participants to monitor.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.