Two small-cap companies, Rajnish Wellness Ltd and Vishnu Chemicals, have set record dates this week for the purpose of determining eligibility of shareholders for sub-division/split of face value of equity shares.
A stock split occurs when a company issues extra shares to its existing shareholders while reducing the face value of each share by a predetermined ratio. For instance, if the ratio is 1:5, then the shareholders will receive 5 shares for every share they own.
Rajnish Wellness Ltd, which is engaged in manufacturing and selling various ayurvedic medicinal products, has fixed Tuesday, January 10, as the record date for determining eligibility of shareholders for stock split in 1:2 ratio, which is one equity share having face value of ₹2 to be split into 2 equity shares of Re 1 each.
As per trendlyne data, the company has split the face value twice since July 21, 2022.
The stock has been trading on an ex-split basis in today's trade, and recorded a new 52-week high.
Vishnu Chemicals Ltd, which is engaged in the manufacturing and sale of specialty chemicals, has fixed January 13 as the record date for the purpose of sub-division of 1 equity share of ₹10 into 5 equity shares of Rs. 2 each fully paid up.
As per trendlyne data, the company has split the face value once since January 13, 2023, and had last split the face value of its shares from ₹10 to ₹2 in 2016.
The ex-split date for the stock is similar to its record date.
Welspun Enterprises Ltd, a small-cap company that operates in the road and water infrastructure industry with investment in the oil and gas space, has fixed Wednesday, January 11, as the record date for the purpose of determining the shareholders eligible for special dividend.
According to the company's exchange filing in December, the board has approved to pay a one time special dividend of ₹7.50 per equity share of the face value of ₹10 each at the rate of 75 percent for FY2023.
The dividend will be paid to the shareholders who are holding equity shares of the company on the record date. It will be paid on or after January 20.
As per trendlyne data, the company has declared 13 dividends since September 20, 2005.
In the past 12 months, the company has declared an equity dividend amounting to ₹1.50 per share. The ex-dividend date is same as the record date.
A one-time payment of company assets, typically in the form of cash, to shareholders is known as a special dividend.
The majority of special dividends are associated with a specific occasion and are usually larger than the regular dividends paid to shareholders.
On the other side, dividend payments to shareholders on a recurring basis are known as interim dividends. Interim dividends typically aren't as large as dividend payments made after the end of financial year. Generally, when quarterly earnings results are reported, these payments are announced.