Several companies are set to undergo important corporate actions this week, including dividends, stock splits, and bonus issues. Investors should pay close attention to these events, as they can significantly impact share prices and investment strategies.

Key Companies and Corporate Actions

Important Dates and Considerations

Investors must be aware of the following key points:

1. Record Date: This is the cut-off date for determining eligibility for corporate actions.
2. Ex-Date: Typically coincides with the record date and marks when share prices adjust to reflect the corporate action.
3. T+1 Settlement Cycle: Under India's current settlement system, shares purchased on the record date itself will not qualify for the corporate action.

Market Performance

The domestic equity benchmarks showed positive movement on Friday:

• Nifty 50 and Sensex: Ended higher after volatile trading
• Sectoral Performance:
  • NSE Nifty PSU Bank: Led sectoral gains
  • NSE Nifty Defence: Declined the most

Investor Guidance

1. Monitor Record Dates: Keep track of announced record dates to ensure eligibility for corporate actions.
2. Understand Ex-Dates: Be aware that share prices typically adjust on the ex-date to reflect the impact of corporate actions.
3. Settlement Cycle Impact: Remember that the T+1 settlement cycle affects eligibility for corporate actions based on the purchase date of shares.
4. Diversification: Consider the impact of these corporate actions on your portfolio and adjust your investment strategy if necessary.

Investors are advised to stay informed about these corporate actions and consult with financial advisors if needed to make well-informed investment decisions.

Several companies have recently announced bonus share distributions and dividend payments, benefiting shareholders through increased shareholding and cash returns.

Bonus Share Announcements

Sandur Manganese Iron Ores: 2:1 Bonus Issue

Sandur Manganese Iron Ores has declared a 2:1 bonus issue. Shareholders will receive two additional shares for every one share held, effectively tripling their shareholding. The record date for this bonus issue is set for September 22.

Pidilite Industries and Time Technoplast: 1:1 Bonus Issues

Both Pidilite Industries and Time Technoplast have announced 1:1 bonus issues, doubling the number of shares for their investors. Shareholders of these companies will receive one additional share for each share owned. The record date for both companies is September 23.

Nazara Tech: 1:1 Bonus Issue

Nazara Tech has also declared a 1:1 bonus issue, allowing shareholders to double their holdings. The record date for Nazara Tech's bonus issue is set for September 26.

Chandra Prabhu International: 1:2 Bonus Issue

Chandra Prabhu International has announced a 1:2 bonus issue, where shareholders will receive one bonus share for every two shares held. The record date for this bonus issue is also September 26.

Dividend Announcements

Several companies have declared dividend payments for shareholders this week:

Other companies included in the dividend announcements are Ahluwalia Contracts (India) Ltd. and Jindal Poly Films Ltd.

Implications for Investors

Under India's T+1 settlement cycle, investors must purchase shares at least one trading day before the record date to be eligible for bonus allotments and dividends.

Bonus issues increase the number of shares held without any additional cost, while dividends provide cash returns to shareholders. However, it's important to note that while the number of shares increases in a bonus issue, the overall value of the shareholding remains the same immediately after the issue, as the stock price typically adjusts proportionately.

Investors should be aware that dividend income exceeding Rs 5,000 in a financial year is subject to 10% TDS for resident individuals.

Shareholders are advised to consider these corporate actions as part of their overall investment strategy and to consult with financial advisors for personalized advice.