Investors who have an interest in playing corporate actions should keep their tabs on some companies following the announcement of the dividend payout and share buyback date. Other companies with ex-dividends and corporate actions include Hindustan Zinc, Manappuram Finance, Manorama Industries, Jindal Stainless, Oil India Limited, among others, whose stocks will be at the center of focus in the week coming up.
In essence, dividends are part of the modes in which a company compensates its investors for the investments they make in the business. Cash payments are made from the earnings that the company realizes and are based on the par value of each share. These forms of payments are important to the investors because they will influence some of the investment decisions of the investor for the following reasons:.
Ex-Dividend Next week, a whisper of many companies shall become ex-dividend; all it means that the dividend scheduled next will not be payable to the buyer of the stock on or after the ex-date. The following companies shall become ex-dividend in the next week:
- Dhruv Consultancy Services: The shares will trade ex-dividend with a dividend of Rs 0.25 per share on Monday, August 26, 2024.
- Manappuram Finance: The shares will turn ex-dividend on August 26, 2024, and Rs 1 per share will be paid as a dividend.
- Windsor Machines: On Tuesday, August 27, 2024, shares will trade without dividend entitlements at Rs 0.5 per share.
- Manorama Industries: Manorama Industries’ ex-dividend date will be the same day, August 27, 2024, when a dividend of Rs 0.40 per equity share will be announced.
- United Drilling Tools: Shares also shall trade ex-dividend on August 27, 2024, with a dividend of Rs 0.60 per share.
- KDDL: Shares shall trade ex-dividend on August 27, 2024, with a dividend of Rs 4 per share.
- GE T&D India: On Wednesday, August 28, 2024, the shares shall go ex-dividend with an amount of Rs 4 per share.
- Force Motors: The shares will also be trading ex-dividend on August 28, 2024, with a dividend of Rs 20 per share.
- Sigachi Industries: The shares shall trade ex-dividend on August 28, 2024, with a dividend of Rs 0.10 per share.
- Hindustan Zinc: Shares will also trade ex-dividend on August 28, 2024, along with a dividend of Rs 0.10 per share.
- Shekhawati Industries: Shares would trade ex-dividend on August 28, 2024, with a Rs 0.10 per share dividend.
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Apart from dividends, the other distribution comes in the form of buybacks of shares. A share buyback is, by process, bought by a company of its shares back from the marketplace. This is often done to reduce the outstanding shares in the system and enhance the value of shares for other shareholders. Important buybacks planned for the coming week are as follows:
- VLS Finance Ltd: On August 26, 2024, Shares to be traded without the benefit of shares buyback of up to 33, 00,000 fully paid-up equity shares at a price of Rs 380 per share, constituting an offer size of Rs 125 crore.
- Pune-based Technocraft: Industries has informed that Tuesday, August 27, 2024 will be the ex-date for the buyback of up to 2,88,889 fully paid equity shares at Rs 4500 per share for an aggregate amount of Rs 130 crore, which is around 1.26% of the total equity share capital.
- Suprajit Engineering: The stock will also become ex-date on August 27, 2024, for a buyback of up to 15,00,000 fully-paid equity shares at a price of Rs 750 per equity share, for an aggregate value not exceeding Rs 112.50 crore paid-up equity share capital, which is approximately 1.08.
- KDDL: On August 27, 2024, the shares shall go ex-date for the buyback of up to 2,37,837 fully paid equity shares at an offer price of Rs 3,700 per equity share aggregating to Rs 88 crore. The price is about 1.90 per cent of the total equity share capital.
Overall,
| Company Name | Action Type | Ex-Date | Dividend/Buyback Details |
|---|---|---|---|
| Dhruv Consultancy Services | Dividend | August 26, 2024 | Rs 0.25 per share |
| Manappuram Finance | Dividend | August 26, 2024 | Rs 1 per share |
| Windsor Machines | Dividend | August 27, 2024 | Rs 0.5 per share |
| Manorama Industries | Dividend | August 27, 2024 | Rs 0.40 per share |
| United Drilling Tools | Dividend | August 27, 2024 | Rs 0.60 per share |
| KDDL | Dividend | August 27, 2024 | Rs 4 per share |
| GE T&D India | Dividend | August 28, 2024 | Rs 4 per share |
| Force Motors | Dividend | August 28, 2024 | Rs 20 per share |
| Sigachi Industries | Dividend | August 28, 2024 | Rs 0.10 per share |
| Hindustan Zinc | Dividend | August 28, 2024 | Rs 0.10 per share |
| Shekhawati Industries | Dividend | August 28, 2024 | Rs 0.10 per share |
| VLS Finance | Buyback | August 26, 2024 | 33,00,000 shares at Rs 380 per share (Total: Rs 125 crore, 9.48% of equity) |
| Technocraft Industries | Buyback | August 27, 2024 | 2,88,889 shares at Rs 4,500 per share (Total: Rs 130 crore, 1.26% of equity) |
| Suprajit Engineering | Buyback | August 27, 2024 | 15,00,000 shares at Rs 750 per share (Total: Rs 112.50 crore, 1.08% of equity) |
| KDDL | Buyback | August 27, 2024 | 2,37,837 shares at Rs 3,700 per share (Total: Rs 88 crore, 1.90% of equity) |
| Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) | Dividend | September 06, 2024 | Rs 16.50 per share (165% payout, payment date on or after September 23, 2024, subject to shareholder approval) |
Foreign fund house lapped up GNFC’s 165% dividend
Another company that has set the waters abuzz is Gujarat Narmada Valley Fertilizers & Chemicals Limited with a huge dividend payout. The board of directors of GNFC, in their meeting held on Thursday, May 30, 2024, has recommended a final dividend of Rs. 16.50 per equity share, representing a 165 percent payout to the shareholders of the company.
It has a dividend record date set on Friday, September 6, 2024, with payment made on or after Monday, September 23, 2024, after the payment is ratified by shareholders.
Also, this says something about the strong financial performance of the company, though the stock of the company has had to deal a bit with the vagaries of late; GNFC had last ended in red at Rs 666.30 per share on Friday, August 23, 2024. Taking on better in terms of long-term performance.
Over a 5-year frame, the stock had moved up by 272.96%, and over the last three years, it had given back as much as 110.45% to its shareholders. On a year-to-date basis, however, it remained down by 16.
Such ex-dividend dates are important for investors who would like to plan a strategy of actually earning dividend income either on shares or through share repurchases. Understanding the timing and effects of such corporate actions can sometimes reveal quite a lot about investment decisions that may turn out over the next few weeks.
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