Corporate Actions Today: What are the Benefits to Investors

SBI Card and Hindustan Zinc are some of the companies that are turning ex-dividend today, while Symphony shares will go ex-buyback, SEPC shares will turn ex-rights, and Bharat Agri Fert & Realty shares will go ex-split. As these announcements are made for the financial year 2022-23, these benefits will be entitled only to the shareholders whose names are registered in the records of the company till 29 March 2023. But to understand corporate actions with more clarity, let’s understand these basic terminologies first and related announcements:

Ex-dividend: 

Usually, at the time of declaring a dividend, a company determines its record date by which the shareholders need to be in the records of the company to receive dividends. There is another date: the ex-dividend date, which is set on the basis of the stock exchange rules. Usually, the ex-dividend date for stocks is set one business day before the record date. 

Hindustan Zinc

The record date for the intermediate dividend paid by Hindustan Zinc, which is worth Rs 26 per share, is 29 March 2023. On April 20, the dividend will be paid. 

The firm in January also declared a dividend of Rs 13 per share, a dividend of Rs 15.50 per share in November 2022, and an interim dividend of Rs 21 in July of the previous year. Hindustan Zinc has thus far declared dividends totaling Rs 75.50 per share for FY23.

SBI Card

The record date for the interim dividend paid by SBI Card, which is Rs 2.50 per share, is today, i.e., 29th March 2023. On April 19, the dividend will be paid. In the past year, SBI Card has distributed an equity dividend of Rs 2.50 per share, yielding a 0.34% dividend.

SBI Card has 1 lakh credit card customers and provides payment products & services. The business is the second-largest credit card issuer in the US, with more than 15.5 million active credit cards.

  • Ex-buyback:

 It is an exercise when a company buys back its shares from its existing shareholders at a higher price than the current market price.

Symphony 

Today is the last day of the buyback period for Symphony shares. Up to 10,000,000 fully paid-up equity shares with a face value of Rs 2 each will be repurchased by the firm through a tender offer process from the current shareholders and beneficial owners as of the record date, or March 29.

  • Ex-rights: 

When either the original holder of the shares himself has exercised his rights or has passed on the rights to the other party, or it may expire, then the rights related to the shares are called ex-rights.

Services Export Promotion Council

The company will issue up to 4,99,00,000 shares of SEPC (Services Export Promotion Council) at a face value of Rs. 10 each at a price of Rs. 10, a total of up to Rs. 49.90 crores on a rights basis to the present shareholders of the company in a ratio of two rights shares for every 53 fully paid up shares held by the existing shareholders as of the record date, which is today.

  • Ex-split: 

It is the date on which the stock starts trading at the new adjusted split price.

Bharat Agri Fert & Realty Shares

The ex-split date for Bharat Agri Fert & Realty shares is today. The record date for the purpose of dividing one equity share with a face value of Rs 10 each into ten fully paid-up shares of Rs 1 each has been set by the firm as being Thursday, March 30.

Overall, it was a day of important announcements in the stock market. Investors must stay updated on the ex-dividend dates and other benefits of the companies they are interested in.

Sources:

businesstoday.in

economictimes.indiatimes.com

investorzone.in

chittorgarh.com

economictimes.indiatimes.com

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