Multibagger smallcap stock to turn ex-dividend on 11 Jan as firm to pay ₹7.5 per share special dividend

As per the regulatory filing, in a meeting held on December 30th, the company’s board approved to pay a one-time special dividend of ₹7.50 per equity share having a face value of ₹10 each at the rate of 75% for the financial year 2022-23.

The company fixed January 11 as the record date to determine eligible shareholders for the special dividend. Since the company’s settlement type in equity shares is ‘T+1’, the ex-dividend date is the same as the record date.

In its filing, Welspun Enterprises said the dividend will be paid to the shareholders who are holding equity shares of the company on the record date which would be January 11th. While the special dividend is expected to be paid on or after January 20, 2023.

This one-time special dividend is multi-fold high from the dividend of ₹1.50 per equity share paid each in FY22 and FY21.

Last week, on Friday, Welspun Enterprises stock ended at ₹165.15 apiece down by 2.45% on BSE. The company’s market cap is around ₹2,477 crore. It needs to be noted that the stock did touch an intraday high of ₹170.75 apiece which is a couple of rupees away from the 52-week high of ₹174.80 apiece on the exchange. The downside in the stock tracked the broader bearish markets tone.

At the current price level, the company’s dividend yield is around 0.91%.

Also, the company has announced a buyback of 1,17,50,000 equity shares at a face value of ₹10 each at a buyback price of ₹200 per share aggregating to ₹235 crore. The record date for buyback will be decided and informed separately.

Welspun Enterprises has recorded strong gains in 1 year. On January 6th, 2022, the stock was around ₹97.05 apiece. From this level, the stock has advanced by over 70% on Dalal Street as of now. Also, from the 52-week low of ₹69 apiece which was recorded on May 12, 2022, the stock has skyrocketed by 139.5% to date.

Welspun Enterprises is the infrastructure arm of the Welspun Group. Notably, it is an operating as well as holding company, which executes Engineering, Procurement, and Construction (EPC) contracts for roads and water projects.