Rs 110 Dividend Per Share: 2 Bajaj Stocks Trade Ex-Dividend On September 28 For 1100% Dividends

Bajaj Holdings & Investment and its subsidiary Maharashtra Scooters, both being part of behemoth Bajaj Group, are trading ex-dividends for a dividend payout of a massive 1100%. On September 28, both stocks turned ex-dividend on exchanges. Both companies are rewarding their shareholders Rs 110 dividends per share each. Investors who own both stocks are in for a hefty treat!

Dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.

Hence, those investors who hold Bajaj Holdings and Maharashtra Scooters shares in their demat accounts by the end of September 28 business hours will be eligible for dividend benefits. Earlier, the companies had set September 29 as the record date for determining eligible shareholders, however, that changed to September 28 due to a change in settlement holiday.

Both companies are planning to pay a Rs 110 dividend per share each on or around Friday, October 13, 2023.

Bajaj Holdings:

The flagship firm of the Group, Bajaj Holdings traded at Rs 7202.00 apiece, down by Rs 111.05 or 1.52% on BSE. Its market cap was over Rs 80,153 crore.

On its ex-dividend day, the stock ranged from Rs 7303.60 apiece to Rs 7138.85 apiece respectively.

Bajaj Holdings has considered and declared an interim dividend of Rs 110 per share having a face value of Rs 10 each for the financial year ending March 31, 2024. In percentage terms, the dividend payout will be 1100%.

In the June 2023 quarter, Bajaj Holdings consolidated net profit stood at Rs 1,416 crore, rising by a whopping 46% from its profit of Rs 969 crore in the same quarter a year ago. Bajaj Holdings is the parent company of listed stocks namely Bajaj Auto, Bajaj Finserv, Bajaj Finance, Bajaj Electricals and Maharashtra Scooters.

Year-to-date, Bajaj Holdings shares have rallied by over 28.5% on BSE.

Maharashtra Scooters:

At the time of writing, Maharashtra Scooters traded flat at Rs 7672 apiece on BSE with a market cap of Rs 8,774.45 crore. However, the stock ranged from Rs 7724 apiece to Rs 7615 respectively so far in the day.

Just like its parent, Maharashtra Scooters is also set to reward its shareholders with a dividend payout of Rs 110 per share or 1100% having a face value of Rs 10 each for FY24.

MSL continues to be a Core Investment Company ('CIC'), not requiring registration with RBI. As a CIC, a minimum of 90% of its assets stand invested in the Bajaj group and the balance representing accumulated surpluses is invested in debt and other instruments with the sole objective of earning a reasonable rate of return whilst protecting the principal.

The Company sees an opportunity in manufacturing of pressure die casting dies, castings, jigs, and fixtures, primarily meant for the two three - and three-wheeler industry amongst other industries, which is the current manufacturing activity of the Company. The customer profile has since expanded from the auto component to include the Telecom segment, the Generator segment, the Electrical Vehicle segment, and LED Light parts.

Year-to-date, Maharashtra Scooters has outperformed its parent by rising 63.5% on BSE.