Rs 5/ Share Dividend: Logistic Stock Trades Ex-Dividend For 50% Dividend Payout; Shares Up 111% In 5 Years

Smallcap stocks have queued to trade ex-dividend this week and VRL Logistics is one of them. On Monday, VRL traded on a volatile note as it turned ex-dividend for a dividend payout of 50% for its shareholders for the financial year 2022-23. The stock is also in focus ahead of its Q1 results for FY24 which is scheduled on August 7.

As per the regulatory filing, VRL's board proposed a final dividend of Rs 5 per share for the fiscal FY23. The Dividend, if any declared, shall be payable to those Shareholders

whose name(s) stand registered:

- As Beneficial Owner as of the end of business hours on July 31, 2023, as per the lists to be furnished by National Securities Depositories Limited and Central Depository Services (India) Limited in respect of the shares held in electronic form, and

- As Member in the Register of Members of the Company/Registrar & Share Transfer Agent after giving effect to valid share transmissions, if any, in physical form lodged with the Company as of the end of business hours on July 31, 2023, shall be entitled to avail of the facility of remote e-voting / Insta Poll.

Hence, VRL said, "A person, whose name is recorded in the register of members or in the register of beneficial owners maintained by the depositories as on the cut-off date, i.e. July 31, 2023, only shall be entitled to avail the facility of remote e-voting/Insta-Poll."

The dividend is approved in the AGM, then the company plans to pay the 50% dividend on or before August 24, 2023.

It needs to be noted that the dividend payout is subject to tax rates. A tax deducted at source (TDS) is applicable on the dividends.

However, no TDS will be deducted on payment of dividends to the resident individual/HUF shareholder if the total dividend during the financial year ('FY'), does not exceed Rs 5,000.

However, a 10% TDS will be levied if the dividend payout is more than Rs 5000 in case of a valid Permanent Account Number (PAN) card. But if the PAN card is not valid with the depository participant, then the TDS will be 20% for resident shareholders other than Resident Individuals/HUFs.

Earlier, in February last year, the company turned ex-dividend for 80% aggregated to Rs 8 dividend per share.

Also, the company concluded a buyback of Rs 61.25 crore in April this year. The company bought back 8,75,000 equity shares from its shareholders at a price of Rs 700 per share.

At the time of writing, VRL's share price traded at Rs 734.95 apiece broadly flat on BSE compared to the previous session's Rs 734.85 apiece. On Monday, the stock ranged from Rs 736 to Rs 729.85 apiece respectively.

The company is set to announce its June 2023 quarterly earnings report on August 7, 2023.

Year-to-date, VRL shares have rallied by nearly 34% on BSE. But the stock is a multibagger with gains of nearly 111.5% in 5 years.