Rs 15/Share Dividend: Smallcap Stock At New 52-Week High Ahead Of Ex-Dividend; Know Important Dates

Smallcap stock, Vindhya Telelinks witnessed a healthy trading week ahead of its ex-dividend date, Monday, September 4, 2023. The stock will be in focus this week for its dividend payout of Rs 15 per share and also the upcoming annual general meeting. Last week, on September 1 alone, the stock touched a new 52-week high of Rs 2,325 apiece ahead of the dividend.

After considering its profitability, free cash flow, overall financial performance and other parameters, the company's board recommended rewarding its shareholders with a dividend of Rs 15 per equity share of face value Rs 10/- each (i.e. 150%) for the financial year ended on March 31, 2023.

In FY22, the dividend payout was Rs 10 per share.

The distribution of Dividends on equity shares, if approved by the Members at the ensuing Annual General Meeting, will result in a payout of nearly Rs 17.78 crore.

It said the dividend recommended follows the Company's Dividend Distribution Policy. No amount has been transferred to the General Reserve for the financial year 2022-23.

Further, the company informed exchanges that the Register of Members and Share Transfer Books of the Company shall remain closed from Tuesday, September 5, 2023, to Monday, September 11, 2023 (both days inclusive) for the 40th Annual General Meeting (AGM) of the Company to be held on September 11, 2023, and determining the names of members eligible for dividend on equity shares, if declared at the AGM.

Hence, the stock will turn ex-dividend on September 4, 2023.

If the dividend is approved in the AGM, the payment of such will be made on or before October 10, 2023.

Last week, on Friday, Vindhya Telelink's share price ended at Rs 2315.70 apiece, up by 5.7% on BSE, after hitting a new 52-week high of Rs 2,325 apiece. Year-to-date, the stock price has rallied nearly 36%.

Since May 2001, the company has declared a whopping 13 dividends, as per Trendlyne. On the current market price, the stock's dividend yield is 0.43%.

Vindhya Telelinks is the outcome of a Public-Private joint venture between Universal Cables Limited and the Madhya Pradesh State Industrial Development Corporation Limited. At the time of its conception, Vindhya Telelink's primary mandate was to manufacture Jelly Filled Telephone Cables (JFTC).

In the present times, Vindhya Telelinks has emerged as a leading manufacturer & supplier of Jelly Filled Telecommunication Cables, as well as of Optical Fiber Telecommunication Cables.

Dividends are distributed also in a certain proportion by listed companies from their net profits earned in a respective financial year. The record date is proposed by the listed company's board of directors to determine the name of the eligible shareholders for dividends. As per BSE FAQs, to be eligible to receive dividends, investors have to have shares in the Demat account by record date. Meanwhile, the ex-dividend date is the day when the price of the equity share of the listed company gets adjusted for the dividend payout.