Rs 11/Share Dividend: Multibagger Stock In Focus For Dividend Payout; When, How To Get The Benefits?

Multibagger stock, Nirlon is set to trade ex-dividend on Mondy for its dividend payout of Rs 11 per share to shareholders. Year-to-date, Nirlon stock has rallied by 33%, but in 5 years, the stock has given a whopping 130% returns to its investors. Nirlon is a small-cap stock with a market cap of a little over Rs 4,062 crore on BSE as of September 1, 2023. The stock will see movement amidst determining eligible shareholders for dividend benefits.

As per the regulatory filing, Nirlon announced a final dividend of Rs 11.00 per equity share (@110%) has been recommended by the Board for the F.Y. 2022-23, and is subject to the approval of Members at this ensuing 64th AGM, Friday, September 15, 2023.

The record date to determine eligible shareholders for the dividend payout is set on September 4, 2023, as the company's book closure period will be from September 5th to September 15th. Hence, the stock will also turn ex-dividend on September 4.

Who will be eligible for the dividend benefits?

These shareholders will be beneficiaries:

1. Members who have held Nirlon shares in Dematerialized Form, as per the data made available by the National Securities Depository Limited and the Central Depository Services (India) Limited, as of the close of business hours on Monday, September 4, 2023.

2. Members who also have held Nirlon shares in Physical Form, after giving effect to valid Transmission and transposition in respect of requests lodged with the Company on or before the close of business hours on Monday, September 4, 2023.

When will the dividends be paid?

If the dividend as recommended by the Board is approved at the 64th AGM, payment of such dividend, subject to deduction of tax at source (TDS), will be made on or before Friday, October 13, 2023, to members.

Simply put, the payment of the Dividend will be credited/dispatched on or after Wednesday, September 20, 2023, which is the AGM date.

On Friday, last week, Nirlon shares ended at Rs 450.75 apiece, up by 0.94%. Nirlon is listed on BSE.

Overall, for FY23, the company's dividend payout will be to the tune of 260% aggregating to Rs 26 per share.

As per Trendlyne data, Nirlon has declared 13 dividends since August 2002. At the current market price, its dividend yield is at 3.33%.

Recently, CRISIL Ratings has reaffirmed its 'CRISIL AA+/Stable' rating on the long-term bank facilities of Nirlon.

CRISIL said that the rating continues to reflect the company's steady cash flow supported by the advantageous location of NKP, its healthy occupancy and marquee clientele. The rating also factors in strong debt protection metrics and an established track record of the asset. These strengths are partially offset by exposure to geographical and tenant concentration risks and susceptibility to volatility in occupancy and interest rates.

Also, CRISIL Ratings believes the debt protection metrics of Nirlon will remain robust, backed by steady cash flow from lease rentals and low debt.

Nirlon owns and operates NKP. The park has a total leasable area of 30.6 lakh sq. ft and has been developed in a phase-wise manner with the final phase (phase V), comprising 11.6 lakh sq. ft, receiving the occupation certificate in fiscal 2022. The company has a track record of collecting rentals for over ten years. It also owns an undivided interest of 75% in Nirlon House, located in Worli (leasable area of 0.5 lakh sq. ft).