Corporate actions this week: REC, SBI Card, HUDCO to go ex-dividend, Persistent Systems ex-split and more

There are a host of corporate actions scheduled for this week. Aditya Vision, Crisil, HUDCO, REC, and SBI Card will trade ex-dividend, while Persistent Systems will trade ex-split this week.

On Thursday, 28 March, Aditya Vision (Rs 5.1/share), Crisil (Rs 28/share), HUDCO (Rs 1.5/share), Prithvi Exchange (Rs 2/share), R Systems International (Rs 6/share), REC (Rs 4.5/share), SBI Cards and Payment Services (Rs 2.5/share), Standard Industries (Rs 0.5/share), and Thinkink Picturez (Rs 0.1/share) will trade ex-dividend.

The ex-dividend date is when the price of the equity shares of a company gets adjusted for the dividend payout. It is one or two working days before the record date. All the shareholders whose names appear in the company's list by the end of the record date will be eligible to receive dividends.

Shares of United Van Der Horst (Rs 10 to Rs 5) on Tuesday, while Dhatre Udyog ( Rs 10 to Rs 1), Lorenzini Apparels ( Rs 10 to Rs 1), and Persistent Systems ( Rs 10 to Rs 5) on Thursday will ex-split.

A stock split is usually done to increase the liquidity of the stock in the market. On the ex-split date, investors who are holding the stock until the record date will receive the new shares in demat accounts, and the stock price will be adjusted according to the split ratio.

Shares of Lorenzini Apparels (6:11) on Thursday will also be ex-bonus.

A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.

Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.

The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.

Whereas, the record date for the right issue of Markobenz Ventures, and Spectrum Foods is fixed on Wednesday, 27 March 2024.

A rights issue is a prevalent form of corporate action where the company invites existing shareholders to buy additional shares in the company at a discounted price within the said period (the cut-off date).

However, as existing shareholders of the company, you do not have an obligation to buy additional shares. If you think the company has a flourishing business, you can apply for the rights issue and increase your stake within the company.