Daijiworld Media Network – Mumbai
Mumbai, May 27: Shares of several companies, including Bajaj Auto, Bank of India, GlaxoSmithKline Pharmaceuticals and Torrent Pharmaceuticals, will remain in focus on Wednesday as it is the final trading session for retail investors to purchase stocks and become eligible for upcoming dividend payouts.
The companies are scheduled to go ex-dividend after the record date, making Wednesday the last effective day for investors to buy shares under India’s T+1 settlement cycle.
Among the major announcements, Bajaj Auto Ltd. has declared a final dividend of Rs 150 per share, while Advani Hotels & Resorts (India) Ltd. announced an interim dividend of Rs 0.80 per share.
In the banking and financial services segment, Bank of India has declared a dividend of Rs 4.65 per share. Home First Finance Company India Ltd. announced a final dividend of Rs 5.20 per share, while ICICI Lombard General Insurance Company Ltd. declared a final dividend of Rs 7 per share.
Several pharmaceutical and healthcare companies have also announced payouts. Eris Lifesciences Ltd. declared an interim dividend of Rs 7.21 per share. GlaxoSmithKline Pharmaceuticals Ltd. announced a final dividend of Rs 57 per share, while JB Chemicals & Pharmaceuticals Ltd. and Torrent Pharmaceuticals Ltd. declared final dividends of Rs 9.30 and Rs 9 per share respectively.
Other companies announcing dividends include BCPL Railway Infrastructure Ltd., which declared a final dividend of Re 1 per share, S Chand and Company Ltd. with an interim dividend of Rs 4 per share, and UNO Minda Ltd. with a final dividend of Rs 1.75 per share.
As per the T+1 settlement mechanism followed in Indian stock markets, investors purchasing shares on the record date will not qualify for dividend benefits. Since May 28 is a market holiday on account of Bakrid, investors must hold shares by May 27 to become eligible for the dividend payouts.
Dividends represent a portion of a company’s profits distributed among shareholders as a reward for their investment. Companies generally issue dividends in the form of final, interim or special payouts.
Dividend income is taxable in the hands of shareholders. Under current tax rules, resident individuals are subject to 10 per cent TDS if dividend income exceeds Rs 5,000 in a financial year.