The Indian stock market is buzzing with corporate actions this week, as several prominent companies have announced dividends, bonus issues, and stock splits. These actions can significantly impact shareholder value and market sentiment. Here's a rundown of some of the key announcements from Nestle, Axis Bank, Concor, M&M, and Paras Defence, along with other companies making headlines.
Dividends
Many companies have declared dividends, offering investors a share of their profits. Key highlights include:
- Mahindra & Mahindra (M&M): The auto major has proposed a dividend of ₹25.3 per share, with a record date of July 4, 2025. The dividend will be paid to eligible shareholders after July 31, 2025.
- Nestle India: Nestle has declared a dividend of ₹10 per share, with an ex-date of July 4. For the upcoming 12 months, dividends amounting to 3.23 CHF are expected.
- Axis Bank: The bank has declared a final dividend of Rs 1 per share, with a record date of July 4, 2025.
- Container Corporation of India (Concor): The railway PSU has announced a final dividend of ₹2 per share. The record date for determining eligible shareholders was June 6, 2025.
- Tech Mahindra: The IT company has recommended a dividend of Rs 30 per share, with a record date of July 4, 2025. The dividend will be paid by August 15, 2025.
- Other notable dividend announcements: Several other companies have also announced dividends, including Bharat Forge (₹6 per share), Biocon (₹0.5 per share), DCB Bank (₹1.35 per share), Escorts Kubota (₹18 per share) and Welspun Enterprises (₹3 per share).
Bonus Issues
Bonus issues, where companies distribute additional shares to existing shareholders, are also in focus.
- Container Corporation of India (CONCOR): In addition to the dividend, CONCOR has decided to issue bonus shares to its shareholders for FY25 in the ratio of 1:4, meaning shareholders will receive one share for every four shares held. The company will announce the record date for the bonus issue later.
- Remus: Remus to issue 1 bonus share for each share held; ex-date is July 4.
Stock Splits
Stock splits, which increase the number of shares while reducing the price per share, are another way companies enhance liquidity and attract retail investors.
- Paras Defence and Space Technologies: The company will split its shares from a face value of ₹10 to ₹5 each, with an ex-date of July 4. This is the first-ever stock split by Paras Defence. The company also declared its first-ever dividend of ₹0.50 per share. The split aims to make the shares more affordable and increase retail participation.
Other Key Highlights
- M&M's Dividend History: M&M has a history of rewarding shareholders, having issued 24 dividends since June 26, 2003.
- Nestle's Dividend Consistency: Nestle has a strong track record of increasing dividends, making it a reliable dividend payer.
- CONCOR's Performance: While CONCOR's dividend and bonus announcement failed to lift its stock price, the company achieved its highest-ever throughput in container handling for the full financial year.
- Paras Defence's Growth: Paras Defence's consolidated net profit doubled during the quarter ended March 31, 2025, driven by a surge in revenue.
Impact on Investors
These corporate actions can have several implications for investors:
- Dividends: Provide a direct income stream for shareholders.
- Bonus Issues: Increase the number of shares held, potentially leading to higher returns if the company performs well.
- Stock Splits: Make shares more affordable for retail investors, potentially increasing demand and liquidity.
Ex-Date and Record Date
It's crucial for investors to understand the significance of ex-date and record date. The record date is the cut-off date for determining shareholders eligible for dividends or bonus shares. The ex-date is the date on which the stock starts trading without the benefit of the announced corporate action. To be eligible, investors must purchase the shares before the ex-date.
Conclusion
The flurry of dividend, bonus, and stock split announcements indicates a positive trend in the Indian stock market. Companies are rewarding their shareholders, and these actions can create value and attract more investors. However, investors should conduct thorough research and consider their investment goals before making any decisions.