Shares of Page Industries Ltd. declined up to 4 percent on Friday following its exclusion from Nifty Next 50 index.

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According to a statement by the National Stock Exchange (NSE), Page Industries is among the five stocks that have been excluded from the Nifty Next 50 index.

Cement manufacturer ACC, HDFC AMC, Indus Towers and Nykaa are the other scrips that have been excluded from the Nifty Next 50 index.

The changes would be applicable from September 29. 2023, according to the NSE. The index maintenance sub-committee (equity) of NSE has taken the decision to rejig the stock in various indices.

According to Nuvama Alternative and Quantitative Research, the exclusion of Page Industries from the Nifty Next 50 index could lead to potential outflows worth $27 million.

The Nifty Next 50 index represents 50 largecap stocks from Nifty 100 after excluding the Nifty 50 companies.

Nifty Next 50 is computed using free float market capitalisation method wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalisation value, according to the NSE.

Free float market capitalisation is the portion of the share capital which is available for the public to trade in the stock market.

Also, Page Industries turned ex-dividend on Friday. The company earlier this month announced an interim dividend of Rs 75 per equity share for 2023-24 with a record date of August 19.

The company on June 2 paid a dividend of Rs 60 per share for FY23.

The Bengaluru-based company is the exclusive licensee of Jockey International Inc the manufacture, distribution and marketing of the Jockey brand in India, Sri Lanka, Bangladesh, Nepal and the UAE.

It is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India.

Shares of Page Industries are trading 2.1 percent lower at Rs 40,414.90. The stock is down 3.5 percent on a year-to-date basis.