Stock Split, Dividend, & Bonus; ITC Demerger And More Corporate Actions Due Next Week

The 2nd week of January 2025 is set to be an eventful one for investors, with several listed companies preparing to reward their shareholders through stock splits, bonus issues, and dividends. These corporate actions can significantly impact share prices and investor portfolios. Let's take a detailed look at the key companies and their upcoming record dates for these rewards.

It is very important to know the record date which helps in determining which shareholders are eligible to receive the benefits announced by a company. To be eligible, investors must hold the shares at least one day before the ex-date. Shares bought on or after the ex-date do not qualify for the announced rewards.

Key Corporate Actions Next Week

Several companies including Shriram finance, Julien Agro Infratech have announced record dates for major corporate actions, making it essential for investors to keep track of the ex-dates to qualify for the rewards. Below is a detailed list of companies set to undergo these corporate changes according to data from the BSE.

Stock Splits

• AA Plus Tradelink

AA Plus Tradelink, a company that deals in products made from iron, steel, aluminum, graphite, and other alloys, has announced a 1:10 stock split. This means that for every share held, shareholders will receive 10 shares post-split. The record date for this corporate action is January 8, 2025.

• Kamdhenu

Kamdhenu's stock split will reduce the face value of its shares from Rs.10 to Rs.1. This means that each existing share will be divided into 10 smaller shares, effectively increasing the number of shares held by each shareholder. The ex-date for this stock split is January 8, 2025. The split is expected to improve the stock's liquidity in the market.

• Julien Agro Infratech

Julien Agro Infratech will also undergo a stock split on January 8, 2025. The company's shares will be split from a face value of Rs.10 to Rs. 5 per share. This adjustment will increase the number of shares in circulation and make the stock more affordable for investors.

• Shriram Finance

Shriram Finance has announced a 1:5 stock split, which means each share will be divided into five smaller shares. The record date for this stock split is January 10, 2025. The company expects that the split will enhance liquidity and attract more investors by lowering the price per share.

Bonus Issues

• Algoquant Fintech

Algoquant Fintech has announced a 1:2 bonus issue, where shareholders will receive 1 bonus share for every 2 shares they hold. The record date for this bonus issue is January 8, 2025. Bonus issues are a way for companies to reward existing shareholders by increasing the number of shares they own without any additional cost.

• Padam Cotton Yarns

Padam Cotton Yarns will also reward its shareholders with a 1:1 bonus issue. This means that shareholders will receive 1 additional share for every share they currently hold. The record date for this bonus issue is January 8, 2025.

Dividends

• VTM Limited

VTM Limited has announced an interim dividend of Rs.0.25 per share. Shareholders who hold the company's shares on the record date will be eligible for this payout. Interim dividends are a way for companies to distribute a portion of their profits to shareholders before the fiscal year ends, providing them with periodic returns on their investments.

Major Corporate Action Ahead: ITC Demerger

One of the most significant corporate actions scheduled for next week is the demerger of ITC Limited's hotel business. On Monday, January 6, 2025, shares of ITC will trade ex-date for this demerger. According to an exchange filing, eligible shareholders will receive 1 share of ITC Hotels for every 10 shares held in ITC.

Post-demerger, ITC will retain a 40% stake in the hotel business, while the remaining 60% will be held by ITC shareholders. ITC Hotels is expected to list on stock exchanges in February 2025. This demerger aims to unlock value in ITC's hotel business by creating a standalone entity that can focus solely on its core operations, thereby enhancing shareholder value.