Multibagger smallcap stock to pay ₹7.5 per share special dividend as firm to pay ex-dividend on Jan 11

 

• The company's board approved payment of a one-time special dividend of ₹7.50 per equity share of face value of ₹10 each @ 75% for the financial year 2022-23.

Welspun Group's holding company, Welspun Enterprises will be in focus during this week's trading session as the company's stock will change ex-dividend at ₹7.5 per share ahead of the record date for the special dividend. This small-cap stock has emerged as a multi-bagger with gains of over 139% from its 52-week low in some nine months.

According to regulatory filings, in a meeting held on December 30, the company's board approved payment of a one-time special dividend of ₹7.50 per equity share of face value of ₹10 each, at the rate of 75% for the financial year 2022-23.

The company fixed January 11 as the record date to determine the shareholders eligible for the special dividend. Since the settlement type of the company in equity shares is 'T+1', the ex-dividend date is the same as the record date.

Welspun Enterprises in its filing said the dividend will be paid to shareholders holding equity shares of the company as of the record date which will be January 11. While the special dividend is expected to be paid on or after January 20, 2023.

This one-time special dividend is several times higher than the dividend of ₹1.50 per equity share each paid in FY22 and FY21.

Last week, on Friday, Welspun Enterprises scrip closed at ₹165.15, down 2.45% on BSE. The market cap of the company is around ₹2,477 crore. It needs to be noted that the stock touched an intraday high of ₹170.75, a few rupees away from its 52-week high of ₹174.80 on the exchange. The decline in the stock tracked the tone of the broader bearish markets.

At the current price level, the company's dividend yield is around 0.91%.

Also, the company has announced buyback of 1,17,50,000 equity shares of face value of ₹10 each at a buyback price of ₹235 crore of ₹200 per share. The record date for the buyback will be decided and communicated separately.