Corporate Actions: Several companies set to go ex-date, demerger, rights issue on May 14; M&M Financial, Raymond others on radar
Key Corporate Actions to Watch on May 14, 2025: From Dividends, Rights Issue to Demerger, Foseco India, Mahindra & Mahindra Financial Services, and R Systems International in focus.
Corporate Action: As Wednesday, May 14, 2025, approaches, key companies, including Foseco India, Mahindra & Mahindra Financial Services, R Systems International and Raymond are set to dominate market activity with their respective corporate announcements. Investors will be closely watching these companies as they move ex-date, marking important dates for dividend payouts, rights issues, and other corporate actions.
Here's a breakdown of what to expect:
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Foseco India
Foseco India will trade ex-dividend following the declaration of a final dividend at its AGM, with the record date set for May 14, 2025.
R Systems International
IT service management company R Systems International will trade ex-dividend on May 14, 2025, with a Rs 6 per share interim dividend for shareholders.
Mahindra & Mahindra Financial Services
In a major development, Mahindra & Mahindra Financial Services, a prominent NBFC, will turn ex-date on May 14, 2025, as part of its Rs 3,000 crore rights issue. The issue will offer one rights equity share for every eight fully paid-up equity shares held, with the issue price set at Rs 194 per share.
BSE Ltd
BSE Ltd will issue a total dividend of Rs 23 per share, comprising an Rs 18 regular dividend and a Rs 5 special dividend. Both the ex-date and record date for this dividend will fall on May 14, 2025.
Raymond
Raymond has set May 14, 2025 as both the ex-date and record date for its demerger of the real estate business into a separate entity. Additionally, the company will offer a rights issue of equity shares, with eligibility determined by the record date.
What is ex-date and record date?
The ex-dividend date marks the first trading day when a stock will be traded without the dividend entitlement. Investors who buy the stock on or after this date will not receive the dividend.
The record date is set by the company to determine which shareholders are eligible to receive the dividend. Only those who are registered as shareholders by the close of the record date will get the dividend payout.
Rights issue explained
A rights issue allows existing shareholders to purchase additional shares of a company at a discounted price, typically to raise capital. It ensures that shareholders can maintain their proportional ownership without dilution.
What is stock split?
A stock split increases the number of shares while lowering the price per share, making the stock more affordable but without changing the overall value of the investment.
Bonus issue
A bonus issue gives existing shareholders additional shares for free, based on their current holdings, usually funded from company reserves.
Demerger
A demerger involves a company splitting into two or more separate entities, with shareholders typically receiving shares in the new entities in proportion to their existing holdings.