Minda Industries sees action on account of ex-date of dividend and bonus issue of shares

In the pre-opening session of July 7, the company’s shares witnessed heavy demand from investors.

Minda Industries Ltd, an S&P BSE 500 company, is buzzing on the bourses today. This rally comes on the back of two corporate actions taken by the company, for which the ex-date is today.

To give a perspective, a person purchasing a stock prior to the ex-date, and holding the position before the market opens on the ex-date, is entitled to receive the benefit of the corporate action. A person purchasing a stock on its ex-dividend date or after that, cannot claim the benefit.

The two corporate actions announced by the company are- 

• Bonus issue- The company shall issue a bonus share of 1 (one) equity share of Rs 2 each fully paid up for every 1 (one) existing equity share of Rs 2 each fully paid up (in the ratio of 1:1) as on the "Record Date".  

• Dividend- The company announced a final dividend Rs 1 per equity share on the face value of Rs 2 each i.e. 50% and Rs 0.01 per 0.01% nonconvertible redeemable preference shares for the year ended on 31 March 2022. 

Today, in the pre-opening session too, the company’s shares witnessed heavy demand from investors. Owing to this, in the pre-opening session, the share prices rallied 7.46% to trade at Rs 520.30 apiece. The company was the highest gainer from Group A during this time. 

Minda Industries Limited (MIL) is engaged in the manufacturing of auto electrical parts, such as switches, lighting, batteries and blow moulded products. 

The company is currently trading at a TTM PE of 77.81x, as against the industry PE of 41.17x. In FY22, the company delivered an ROE & ROCE of 10.11% and 14.60%, respectively. 

At 2.58 pm, the shares of Minda Industries Ltd were trading at Rs 494.95, an increase of 2.22% from the previous day’s closing price of Rs 484.20 on BSE. The stock has a 52-week high & low of Rs 630 and Rs 314.78, respectively on BSE.