Upcoming Dividends: Smallcap Cement Stock Rallies Ahead Of 1st Interim Dividend, Fixes Record Date

Smallcap stock in cement basket, Bigbloc Construction rallied by nearly 3% on Wednesday after the company declared its proposal for dividends payout to shareholders. The proposal and its Q2FY24 earnings will be declared in a board meeting scheduled on October 31.

At the time of writing, Bigbloc shares traded at Rs Bigbloc apiece, up by 1.81% on BSE. The stock was near its intraday high of Rs 159 apiece. Its market cap is around Rs 1,113.49 crore.

Overall, the stock gained by 2.9% on the exchange so far in the day.

In its regulatory filing on Monday, Bigbloc said, a meeting of the Board of Directors of the Company will be held on Tuesday, 31st October 2023; to consider the following:

- Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and Half year ended 30th September 2023 as per Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015;

- First Interim Dividend on equity shares for the financial year 2023-2024.

- Other Business matters.

Apart from this, the company also fixed November 8th as the record date e to determine the entitlement of the equity shareholders for the said dividend, if declared.

Accordingly, Bigbloc shares will turn ex-dividend on November 8th as well.

Incorporated in June 2015, Bigbloc is engaged in the business of manufacturing building blocks and AAC (Aerated Autoclave Concrete) Bricks. Aerated autoclaved concrete (AAC) blocks are a high-quality building material that offers a unique combination of strength, low weight, thermal insulation, sound absorption, unsurpassed fire resistance and unprecedented buildability. AAC is a natural and non-toxic construction material, that saves energy, and is friendly to your environment.

In the previous financial year (FY23), the company paid a total dividend of 20% amounting to Rs 0.4 per share.

In general terms, 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.