Shares of a couple of companies, including IT majors Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd, would turn ex-date for dividend today. Two stocks, namely Jai Balaji Industries Ltd and Arunjyoti Bio Ventures Ltd, would turn ex-date for stock split today. Another two, namely Kitex Garments and Sattva Sukun Lifecare Ltd, would turn ex-bonus today.
TCS had announced an interim dividend of Rs 10 and a special dividend of Rs 66. The actual dividend would be paid on February 3. Today is also the record date for the same. Investors whose names appear on the register of members or in the records of the depositories as beneficial owners of TCS shares as of Friday, January 17, 2025, will be eligible for dividends.
HCL Tech, on the other hand, had announced an interim dividend of Rs 12 per and a special dividend of Rs 6. The actual dividend will be paid on January 24.
Shares of Jai Balaji Industries would get split from a face value of Rs 10 each into shares with a face value of Rs 2 each. Shares of Arunjyoti Bio Ventures Ltd would get split from a face value of Rs 10 each into shares with a face value of Re 1 each. A stock split enhances the liquidity of the company’s equity shares and encourages the participation of retail investors by making the company’s equity shares more affordable to invest in.
Friday, Kitex Garments Ltd shares will turn ex-bonus in a ratio of 2:1. For every Kitex Garments share that existing investors hold, two new Kitex Garments shares will be allotted. For Sattva Sukun Lifecare Ltd, the bonus ratio is 3:5, suggesting three new shares will be allotted on five existing shares that investors held.
In bonus shares, unlike stock splits, new shares are issued at the existing face value of the company’s equity shares. Corporate action increases the number of outstanding shares, reduces free reserves and surplus of the company, and increases liquidity but also reduces per-share ratios such as EPS and book value.
Meanwhile, two stocks, Interactive Financial Services Ltd and IEL Ltd, will turn ex-date for rights issues today.