Upcoming Corporate Actions

Corporate Actions are decisions made by a company's board that affect its equity or debt structure, such as dividends, splits, bonuses, or mergers.

The Record Date is the date set by the company to identify eligible shareholders. The Ex-Date is typically 1 business day before the Record Date; you must buy the shares before the Ex-Date to be eligible.

A stock split divides existing shares into multiple new shares (e.g. 10-to-1 split), lowering the individual share price and increasing liquidity without changing the company's overall market value.

A dividend is a portion of corporate earnings distributed to its shareholders as a reward for their investment, usually paid in cash directly into their bank accounts. Dividends are declared by the board of directors and approved by shareholders.

Companies pay dividends to reward loyal shareholders, distribute excess cash that cannot be reinvested at high returns, attract long-term investors, and signal financial health and stability to the market.

The main types of dividends include:\n• Cash Dividends: The most common form, paid in cash directly.\n• Stock Dividends (Bonus): Paid in the form of additional shares.\n• Special/One-time Dividends: One-off payments from exceptional profits or sale of business assets.\n• Property Dividends: Paid using physical assets or shares of subsidiaries.

A bonus issue (or capitalization of reserves) is when a company distributes free additional shares to its existing shareholders in a specific ratio (e.g., 1:1, meaning you receive 1 free share for every 1 share you hold) based on your holding on the record date.

Companies issue bonus shares to make the stock price more affordable for retail buyers (as the price adjusts downwards), improve the liquidity and trading volume of the stock on exchanges, and demonstrate long-term confidence in the company's capital reserves.

A Rights Issue is a corporate action offering existing shareholders the privilege to purchase additional shares directly from the company in proportion to their holdings (e.g. 1 new share for 10 owned) at a discounted price. Shareholders receive Rights Entitlements (REs) in their demat accounts which can be exercised or traded on the exchange.

• Stock Split: Sub-dividing existing shares into multiple shares (e.g., face value Rs 10 split to Rs 2), which lowers the individual share price to attract retail buyers and boost market liquidity.\n• AGM (Annual General Meeting): A mandatory yearly assembly of shareholders where the management presents the annual report, discusses audited financials, declares final dividends, and votes on corporate resolutions.