Dividend paying stock to consider bonus share issue. Details here
1 min read 24 Jun 2022, 09:28 AM ISTDividend paying stock: Board of directors of REC Limited will consider issue of bonus share on 30th June 2022
PremiumDividend paying stock REC Ltd is going to consider issuance of bonus shares on 30th June 2022. In its meeting on 30th June 2022, board of directors of REC Limited will consider the proposal for issue of bonus shares to the equity shareholders of the company. The board is expected to decide ratio of bonus shares in this meeting as well. Bonus shares, if approved, will be another good news for shareholders as the company has already given interim dividend of ₹6 per equity share for the financial year 2022.
REC Limited informed Indian exchanges about the bonus shares citing, "In terms of Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that a meeting of the Board of Directors of REC Limited will be held on Thursday, June 30, 2022 inter-alia to consider a proposal for issue of Bonus shares to the equity shareholders of the Company in the ratio, as it may deem fit by way of capitalization of reserves, subject to approval of shareholders."
In view of the above, the trading window of REC Limited shall remain closed for all designated persons and their immediate relatives from June 20, 2022 till 48 hours after the declaration of the financial results for the quarter ending June 30, 2022, for trading in equity shares and listed securities (tax free bonds etc). The trading window will open 48 hours after the declaration of the financial results for the quarter ending June 30, 2022.
In financial year 2021-22, REC Limited has announced interim dividend twice. It turned ex-dividend stock on 11th November 2021 and 15th February 2022. In November 2021, company had announced an interim dividend of ₹2050 per equity share whereas in February 2022, interim dividend given was ₹6 per equity share. Hence, net interim dividend paid in FY22 is ₹8.50 ( ₹2.50 + ₹6.00).
As REC share price today on BSE is ₹118.70 apiece, and interim dividend paid in FY22 is 8.50 per equity share, net annual dividend yield of the dividend paying stock stands at around 7.15 per cent.
