THIS Tata Group Stock To Pay 360% Dividend To Investors; Should You Buy Ahead of Record Date?

Tata Dividend: Tata Group's subsidiary, Tata Steel, announced a 360% dividend for its shareholders for the financial year 2024-25. The Indian steelmaker has fixed Friday, June 6, as the record date for dividend payment.

Tata Steel shares closed in red after Monday's trading session and have remained under pressure over the past few days. Tata Steel's shares closed 1.21% lower at Rs 159 per share on BSE on Monday with a market capitalisation of Rs 1,98,549.16 crore.

Tata Steel Dividend

The company had announced a dividend of Rs 3.60 per ordinary (Equity) share of face value Rs 1/- each (360%) for its eligible shareholders fr financial year 2024-25. Tata Steel dividend recommended by the Board of Directors of the Company is subject to the approval of the shareholders at the ensuing Annual General Meeting ('AGM') of the Company. Tata Steel's AGM will be held on July 2.

Tata Steel Dividend Record Date

The Tata Group's subsidiary had fixed June 6 as record date to determine the eligibility of shareholders for dividend payment. "Pursuant to Regulation 42 of the SEBI Listing Regulations, the Board of the Company has fixed Friday, June 6, 2025 as the Record Date for determining the Members entitled to receive the dividend for the FY2024-25," read Tata Steel's BSE filing.

Tata Steel Dividend Payment Date

The company has stated in its BSE filing that the dividend, if approved by the shareholders at the AGM, "will be paid, subject to deduction of applicable tax at source, within five days from the date of the AGM."

Tata Steel Dividend: How To Become Eligible?

To become eligible for Tata Steel dividend it is important for shareholders to own Tata steel stock on or before its dividend record date, ie June 6. Tata Steel dividend payment will be taxable for the shareholders.

"As per the provisions of the Income Tax Act, 1961 (Act), dividend paid or distributed by a company shall be taxable at the hands of shareholders. Therefore, the Company is required to deduct tax at source (TDS) at the rates applicable on the amount distributed to the shareholders, if approved at the Annual General Meeting (AGM) of the Company scheduled to be held on Wednesday, July 2, 2025. The aforesaid dividend, if approved by the shareholders at the AGM, will be paid within five days from the date of the AGM," stated Tata Steel in its BSE filing.

Should You Buy Tata Stock Ahead of Dividend Record Date?

Brokerage firm Kotak Institutional Equities has given a 'Sell' rating for the stock indicating a downside of 16%. The brokerage has underlined Tata Steel stock's fair value as Rs 135 per share. Tata Steel share price value has surged nearly 12.56% in one month. However, its value has declined nearly 2% in one week.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.