Shares of chemical manufacturer Foseco India, which is set to pay a whopping 400 percent dividend aggregating to Rs 40 per share to investors, will trade ex-dividend on Wednesday (May 17). The company has fixed May 17 as the record date for the payment of the said dividend.

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On Tuesday, Foseco India shares hit a new one-year high of Rs 2,680 apiece ahead of the company's ex-dividend date. The stock closed 5.09 percent higher at Rs 2,645.20 apiece on the BSE. Foseco's share price has seen a significant upside in the past one year. The shares have skyrocketed nearly 80.2 percent in the last one year, while it has gained about 40 percent on a year-to-date basis.

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Foseco India has informed that the board has approved the payment of a final dividend of 250 percent and a 150 percent one-time special dividend to the shareholders. The smallcap company will pay Rs 25 final dividend per equity share bearing a face value of Rs 10 each to shareholders and Rs 15 one-time special dividend. In total, the company will pay Rs 40 divided per equity share.

"The Board of Directors of the Company has recommended for approval of the Members at the next Annual General Meeting of the Company, a final dividend of Rs. 25/- (250%) on a paid-up equity share of Rs. 10/- each for the financial year ended 31 December 2022, plus a one-time special dividend of Rs. 15/- (150%) giving a total final dividend of Rs. 40/- (400%) per share," the company said in a regulatory filing earlier.

Dividends are referred to as bonuses or incentives given by a firm from their profits to investors/shareholders. Typically, the ex-dividend date for a stock is the business day before the record date of declaring eligible shareholders for the payout.

Notably, investors who buy the stock on the ex-dividend date or later will not be eligible for dividends announced for a particular fiscal by the company.

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First Published:May 17, 2023 9:32 AM IST