This railway PSU gains 12% as stock trades ex-bonus, ex-dividend: Check details

RITES shares hit the day’s high of ₹384 apiece on the National Stock Exchange (NSE) compared with its previous close of ₹683.45 apiece on Thursday (₹341.7 after adjusting to the 1:1 bonus issue).

Notably, the company in July had announced a 1:1 bonus issue, wherein eligible shareholders would get one additional equity share of ₹10 each for every one existing equity share of ₹10 held by them. The company had earlier also announced a final dividend of ₹5 per share, or 50%, for the financial year 2023-24.

The record date for being eligible for both the bonus issue as well as the final dividend was fixed as September 20, 2024. This meant that investors had to hold RITES shares in their Demat accounts on this date to be eligible for the bonus and dividend. To achieve this, the shares could have been bought till September 19 for them to get credited till September 20.

“Final dividend, if approved at the annual general meeting, will be paid to those shareholders whose name appear in the register of members of the company and to those shareholders whose name appears in the statements of beneficial ownership furnished by NSDL and CDSL at the end of business hours on Friday, September 20, 2024,” the company earlier said in a filing to the stock exchanges.

From September 20, the RITES shares started trading without carrying the benefits of the dividend and the bonus.

For the year ending March 2024, RITES declared an equity dividend of 180%, amounting to ₹18 per share. Data shows that RITES has paid a dividend to shareholders as many as 23 times since 2018.

RITES Ltd shares were trading 7.4% higher at ₹364.3 apiece on the NSE at 12:34 pm.