Rs 15/Share Dividend: Tata Stock Declares 2 Key Updates On Dividend, Buy/Sell; Eligibility?

Mid cap Tata Group company, Tata Chemicals issued two key updates pertaining to its dividend. Current market price of Tata Chemicals Ltd share on BSE is Rs 1079.60 per share with intraday fall of 0.42%. Life Insurance Corporation Of India (LIC) has 9.88% stake in Tata Chemicals with 25,163,816 shares. The company's market capitalisation is Rs 27,503.49 crore. Tata Chemicals shares surged 1.86% in last 1-week, fell over 2% in last 1-month, and soared 12% in last 6-months.

The company issued two updated related to dividend. One is related to record date and other is related to tax deduction. It also informed the date of its upcoming AGM. More details below:

Tata Chemicals Dividend: The Board of Directors at their Meeting held on April 29, 2024 has recommended a Dividend of Rs 15/- per Ordinary Share of Rs 10/- each (150%) for the Financial Year ended March 31, 2024, subject to the approval of shareholders at the ensuing 85th Annual General Meeting.

Tata Chemicals Issues Record Date For Dividend: According to the BSE filing of the company dated May 17, 2024, "the Company has fixed Wednesday, June 12, 2024 as the Record Date for determining entitlement of Members to dividend for the financial year ended March 31, 2024. The dividend, if declared by the Members at the ensuing AGM, will be paid subject to deduction of tax at source, on or after Friday, June 28, 2024."

Tata Chemicals Gives Tax Deduction Update On Dividend: According to the BSE filing dated May 17, "As you are aware, the Income Tax Act, 1961 ('the IT Act'), as amended by the Finance Act, 2020, mandates that dividends paid or distributed by a company after April 1, 2020 shall be taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of making the payment of the said Dividend, if declared at the Annual General Meeting of the Company to be held on Wednesday, June 26, 2024. TDS will be deducted at the rate of 20% if the payment is made to a 'Specified Person' as defined in Section 206AB of the Act or if the Permanent Account Number (PAN) is not linked to Aadhar."

Tata Chemicals Issues Date Of Its Upcoming AGM: The 85th Annual General Meeting ('AGM') of the Company will be held on Wednesday, June 26, 2024 at 3.00 p.m. (IST) through Video Conferencing/Other Audio-Visual Means.

How To Become Eligible For Tata Chemicals Dividend? Record date remains crucial role in determining eligibility of shareholders for receiving dividend. Individuals whose name appear in company's shareholders record as on the record date will become eligible to earn dividend announced by the company. Record date is the particular day on which a company confirms the list of shareholders eligible for its dividend distribution. Tata Chemicals set June 12, 2024 as the record date for first interim dividend.

Tata Chemicals Dividend History: Tata Chemicals announced 27 dividends since June 14, 2001. In last 1-year, Tata Chemicals declared an equity dividend amounting to Rs 17.50 per share. At the current share price of Rs 1079.60, Tata Chemicals offers dividend yield of 1.62%.

Tata Chemicals Share Performance: The 52-week high price of Tata Chemicals share on BSE is Rs 1349.70 per share (as on 07/03/2024) and 52-week low price is Rs 927.25 per share (as on 29/02/2024), respectively. Tata Chemicals shares gained 11% in last 3-months, fell 3% YTD, zoomed 10% in last 1-year, soared 51% in last 3-years, and offered return of 306% in last 5-years.

Should You Buy Or Sell Tata Chemicals? Kotak Institutional Equities has sell call on Tata Chemicals shares with target price of Rs 770. According to the analyst, "The company reported weak earnings for 4QFY24, as expected, amid pricing pressure on soda ash across geographies. Earnings seem likely to remain near current run-rates through most of FY2025 in the context of continued oversupply; the large impairment charge in the UK is perhaps an indication."

About: Tata Chemicals is a science-led company with a portfolio that covers basic and specialty chemistry products. The story of the company is about harnessing the fruits of science for goals that go beyond business. The history of Tata Chemicals can be traced to the Okhamandal Salt Works set up in 1927, according to the official website.

Disclaimer: The stock has been picked from the brokerage report of Kotak Institutional Equities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.