Shares of Indian Railway Catering And Tourism Corp. will be in the spotlight on Wednesday, as the day marks the last session for investors to buy shares to qualify for receiving interim dividend before the stock goes ex-date. The record date will determine the eligible shareholders, who will receive the dividend payment.
The IRCTC board last week declared a second interim dividend of Rs 3 per equity share of a face value of Rs 2 each for financial year 2024-25. To determine the shareholders eligible for the dividend payout, the IRCTC board has fixed a record date of Feb. 20.
Given India's T+1 settlement cycle, shares purchased on the record date (Feb. 20 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by Feb. 19 will be the beneficiaries.
Through the second interim dividend, IRCTC will pay shareholders Rs 240 crore.
Earlier, in November, the railways public sector undertaking had declared an interim dividend of Rs 4 per share on face value of Rs 2 each.
Dividends are a way for companies to reward their shareholders.
Other notable companies that will trade ex-dividend on Thursday are ESAB India Ltd. (Rs 23), Procter & Gamble Hygiene & Healthcare Ltd. (Rs 110), and Shivalik Bimetal Controls Ltd. (Rs 1.2).
Shares of IRCTC closed 0.83% lower at Rs 719.4 apiece, compared to a 0.04% decline in the benchmark BSE Sensex. The stock has fallen by about 24% in the last 12 months.
Out of nine analysts tracking the company, five maintain a 'buy' rating on the stock, one recommends 'hold' and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 13%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
