Rs 7.5/Share Dividend: Smallcap Specialty Chemical Stock Trade Ex-Dividend Today, Rallies Over 3%

Smallcap stock, Fairchem Organics rallied on Monday as it traded ex-dividend for 75% dividend payout ahead. The stock gained by more than 3% on BSE and continues to trade on a bullish note. Also, the specialty chemical firm is in focus ahead of its June 2023 quarterly earnings that are scheduled to be declared on August 7, 2023.

At the time of writing, Fairchem Organics share price traded at Rs 1199.95 apiece, up by Rs 25.35 or 2.16%. But the stock has gained by at least 3.44% by hitting an intraday high of Rs 1214.95 apiece during the early deals.

As per the regulatory filing, Fairchem declared a dividend of 75% aggregated to Rs 7.50 per equity share on a face value of Rs 10 each. This is subject to approval in the ensuing annual general meeting (AGM) that will be held on August 7, 2023.

Notably, the company had announced that the registrar of members and share transfer book shall remain closed from Tuesday, August 1, 2023, to Monday, August 7, 2023 (both days inclusive) for the purpose of determining the members eligible to receive the dividend, if approved by the members in the AGM.

That is why, the stock is trading ex-dividend on July 31 ahead of the book closure. Hence, investors who have Fairchem shares in their demat accounts by the end of Monday will be eligible for dividend benefits.

Last year, in July, Fairchem paid a total dividend of 130% aggregating to Rs 13 per share to its shareholders.

At the current market price, Fairchem's dividend yield is 0.62%.

Fairchem has been engaged in the business of manufacturing Oleo Chemicals and Nutraceuticals, for the last 25 years. Fairchem is one of the only manufacturers of Linoleic Acid and Dimer Acid in India, which are the major part of the overall revenues and have a large addressable market size in India. Also, Fairchem supplies to various marquee customers like Asian Paints, Huber (erstwhile Micro Inks), Arkema, BASF, ADM, Cargill etc.

In another regulatory filing, the company said that the board of directors meeting is scheduled to be held on Monday, August 7, to consider and approve the unaudited financial results for the quarter ending June 30, 2023.

Also, on August 7, the board may consider any other business with the permission of the Chair.