DIVIDEND ALERT, Bonus Issue Ex-Date: RailTel, MSTC, 8 Other Stocks to Watch
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Dividend, Bonus Issue: RailTel Corp, MSTC, 8 Others to Go Ex-Date Next Week
As investors prepare for the first trading week of the financial year 2025-26 (FY26), spanning from Tuesday, April 1 to Friday, April 4, 2025, shares of RailTel Corporation of India, MSTC, Varun Beverages, and eight other companies are expected to remain in focus.
These companies will gain attention due to corporate announcements regarding dividend payouts and bonus issues. Other companies on the radar include ADC India Communications, Capital Trade Links, Ranjeet Mechatronics, Sal Automotive, United Spirits, PH Capital, and Unifinz Capital India.
According to BSE data, all these companies are set to trade ex-date next week. Notably, the Indian equity markets will remain closed on Monday, March 31, 2025, due to Eid celebrations.
What Is an Ex-Date, and Why Does It Matter?
Before diving into the stocks that will trade ex-date next week, it's essential to understand what an ex-date is and why it matters to investors.
The ex-date (or ex-dividend date) is the date on which a stock starts trading without the value of its dividend or bonus shares. This means that if an investor purchases shares on or after the ex-date, they will not be eligible for the declared dividend or bonus issue. Instead, the entitlement goes to the person who held the shares a day before the ex-date.
The record date, on the other hand, is the date on which a company finalizes the list of shareholders eligible for corporate benefits. Since stock trades follow a T+1 settlement cycle, investors must purchase shares at least one day before the ex-date to be recorded as eligible shareholders.
By tracking ex-dates, investors can make informed decisions to capture dividend payouts or bonus shares and maximize their returns. Now, let's take a look at the companies that will go ex-date next week.
Stocks Trading Ex-Dividend Date Next Week
Several companies have announced interim dividends for their shareholders. Here’s a detailed breakdown:
RailTel Corporation of India Ltd
Interim Dividend: â‚ą1 per share
Ex-Date: April 2, 2025
Record Date: April 2, 2025
MSTC Ltd
Interim Dividend: â‚ą4.50 per share
Ex-Date: April 2, 2025
Record Date: April 2, 2025
ADC India Communications
Interim Dividend: â‚ą25 per share
Ex-Date: April 2, 2025
Record Date: April 2, 2025
United Spirits Ltd
Interim Dividend: â‚ą4 per share
Ex-Date: April 3, 2025
Record Date: April 3, 2025
Varun Beverages Ltd
Interim Dividend: â‚ą0.50 per share
Ex-Date: April 4, 2025
Record Date: April 4, 2025
PH Capital Ltd
Interim Dividend: â‚ą0.25 per share
Ex-Date: April 4, 2025
Record Date: April 4, 2025
Unifinz Capital India Ltd
Dividend Decision Pending: Board meeting scheduled for March 28, 2025
Record Date (if declared): April 4, 2025
Stocks Trading Ex-Date for Bonus Issue
Some companies have also announced bonus issues, offering additional shares to existing shareholders. Here’s the list:
Capital Trade Links Ltd
Bonus Issue Ratio: 1:1 (1 bonus share for every 1 existing share)
Ex-Date: April 2, 2025
Record Date: April 2, 2025
Ranjeet Mechatronics Ltd
Bonus Issue Ratio: 1:1 (1 bonus share for every 1 existing share)
Ex-Date: April 2, 2025
Record Date: April 2, 2025
Sal Automotive Ltd
Bonus Issue Ratio: 1:1 (1 bonus share for every 1 existing share)
Number of Bonus Shares: 23,97,713 equity shares
Ex-Date: April 3, 2025
Record Date: April 3, 2025
Key Takeaways for Investors
Plan Investments Wisely: If you want to earn dividends, ensure you hold the shares before the ex-date. Buying on or after the ex-date means you will not receive the payout.
Monitor Bonus Issues: Bonus shares increase the number of shares you own but do not increase the overall value of your holdings immediately. However, they can be beneficial in the long term.
Track Market Closures: The Indian stock markets will remain closed on March 31, 2025 (Monday) due to Eid celebrations. Plan your trades accordingly.
Dividend Yield Consideration: While dividends are a great source of passive income, don’t invest in a stock only for its dividend. Consider overall fundamentals, growth potential, and financial health.
Why Investors Should Care About Ex-Dates
Many investors, particularly those focused on dividend income, actively monitor ex-dates to optimize their returns. Dividend-paying stocks can provide a steady income stream, especially for long-term investors and retirees. Meanwhile, bonus issues increase the number of shares an investor owns without additional cost, potentially enhancing future returns.
Tax Implications of Dividends and Bonus Shares
Before investing in dividend or bonus stocks, it's essential to understand the tax implications:
Dividends: In India, dividends received from stocks are taxable in the hands of the shareholders as per their income tax slab.
Bonus Shares: These are not taxed at the time of issuance, but when sold, the profit is subject to capital gains tax.
Final Thoughts
As the new financial year kicks off, several companies are offering dividends and bonus shares, making it an exciting time for investors. By understanding ex-dates, record dates, and corporate actions, investors can make informed decisions to maximize their returns.
If you’re looking to capitalize on these opportunities, ensure you hold shares before the ex-date to qualify for dividends or bonus shares. Also, keep an eye on upcoming announcements from companies like Unifinz Capital India, which may declare dividends later this week.
Stay updated with the latest corporate actions, earnings reports, and stock market news to stay ahead in the game!
Disclaimer: The information in this article is for educational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
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