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Tide Water Oil (India) shares have locked in upper circuit of 5 per cent at Rs 11,458 on the BSE today after the company announced a 1:1 bonus issue, dividend of Rs 200 per share, and stock split Rs 5 to Rs 2.
On June 7 2021, the stock had hit a record high of Rs 12,991 after the company announced a stock split and bonus issue plan on May 26. Despite the correction from an all-time level, the stock has rallied 144 per cent in the past month compared to a 7 per cent rise in the S&P BSE Sensex.
The Board of Directors (BOD) of Tide Water Oil, at their meeting held on June 10, 2021, approved the bonus issue in the ratio of 1:1, which means one bonus share for every share held in the company on the record date. The company also declared a sub-division of the face value of equity shares from Rs 5 to Rs 2.
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Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity. The company has fixed July 27, 2021, as the record date for ascertaining shareholders for bonus issue and stock split.
The board also recommended a final dividend of 4,000 per cent (Rs 200 per share) on a face value of Rs 5 per share (i.e. before sub-division of shares and bonus issue) for the financial year 2020-21, subject to the approval of the shareholders absorbing a sum of Rs 69.70 crore. The dividend recommended per share and percentage thereof will be adjusted accordingly after the sub-division of shares and bonus issue. The dividend will be distributed to the eligible shareholders within 30 days from the 98th Annual General Meeting date, the company said.
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