Shares of financial services conglomerate IDFC Ltd started trading ex-dividend on bourses on Monday after the company declared a special dividend of Rs 11 per share earlier this month.

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The stock ended at Rs 77.8 on the NSE on Monday, 2.5 percent lower than the previous close of Rs 79.80 (adjusted price). The actual closing price for the stock was Rs 90.80 on Friday.

On February 1, IDFC had said in a stock exchange filing that its board of directors has considered and declared a special interim dividend of Rs 11 per equity share to shareholders.

“This is the largest dividend per share ever declared by IDFC. The government of India, which is IDFC’s largest shareholder, will receive Rs 287 crore as this special interim dividend,” the company had said in a press release.

“Total amount of dividend payout would be approximately Rs 1,760 crore… Please note that the Special Interim Dividend, shall be payable to all those equity shareholders, whose names appear in the Register of Members of the Company as at close of day on February 13, 2023, being the record date for the purpose of the aforesaid Special Interim Dividend,” it had added.

IDFC had also announced then that it would invest Rs 2,200 crore in the IDFC First Bank to increase its stake in the lender to 40 percent. Currently, it has a total stake of 36.38 percent in IDFC Bank.

This will provide growth capital to the bank, the company had said in a statement.

It had also announced that the board of IDFC, IDFC Financial Holding Co. Ltd (IDFC HFCL) and IDFC First Bank had decided to merge IDFC and IDFC HFCL with IDFC First Bank in December 2021.

“The merger involves finalising the swap ratio, filing of the scheme and obtaining approvals from the stock exchanges, the Reserve Bank of India, and the Competition Commission of India, apart from approvals by shareholders, creditors and NCLT,” the statement said.

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First Published:Feb 13, 2023 4:32 PM IST