1 dividend, 1 stock split: NBFC, petrochemical firm to turn ex-date this week

One large-cap and one small-cap stock will be in focus in the week ahead as they will turn ex-dividend and ex-split ahead of the record date. These two firms are from diverse segments and have given double-digit returns in a year. The two companies are Shriram Finance and Supreme Petrochem (SPL). While Shriram Finance has announced its highest-ever dividend, on the other hand, SPL will sub-dividend its equity shares in a 1:1 ratio.

In 2022, Shriram Finance stock gained by over 10%, while Supreme Petrochem stock jumped by over 11%.

Shriram Finance:

In a meeting held last week, Shriram Finance’s board of directors approved an interim dividend of 15 per equity share aggregating to 150% of the face value of 10 each for the fiscal FY23. This would be the highest amount of interim dividend by the NBFC to date.

Shriram Finance fixed January 4th as the record date for determining eligible shareholders for the dividend benefit. While they announced to pay the dividend on or after January 18, 2023. Thereby, Shriram Finance shares will turn ex-dividend on January 3rd.

On December 30th, the company’s stock ended at 1,379.80 apiece up by 5.20% on BSE. The company’s market cap is nearly 51,664 crore.

Shriram Finance, a 43-year-old company and part of the Shriram Group, is one of the largest NBFCs in India. The company is a leader in the organized financing of pre-owned trucks with a strategic presence in 5-10-year-old truck lending. The company has a pan-India presence with a network of 2,875 branches and employs 57,382 employees. The company has built a strong customer base of around 6.7 million customers.

The NBFC offers a wide range of products such as Pre-owned CV financing, New CV financing, Two Wheeler Loans, Passenger Vehicle Loans, SME Financing, Personal loans, Gold loans, and other loans like accidental repair loans, tyre loans, and working capital finance, etc.

Also, last week, on Friday, the company announced securing long-term funding of $100 million from the Asian Development Bank (ADB). The $100 million External Commercial Borrowing (ECB) is a 5-year loan and is under SFL’s Social Finance framework.

Supreme Petrochem:

The company has announced a stock split where every existing share having a face value of 4 each will be sub-divided to 2 per share. It fixed January 6th as the record date for determining eligible shareholders for the stock split.

Since Supreme Petrochem has a settlement type of ‘T+1′ which means trading in equity shares takes 1 day to reflect in the investors’ Demat Account. Hence, the ex-split date is also the same as the record date for Supreme Petrochem investors.

Last week, on December 30th, the company’s stock finished at 790.60 apiece up by 2.40%. Its market cap is over 7,433 crore on BSE.

Earlier, in November last year, the company had announced an interim dividend of 4 per share for the fiscal FY23. In the fiscal ending March 31, 2022, the company paid a total dividend of 140% aggregating to 14 per share to its shareholders.

In September 2022 quarter, the company posted a net profit of 59.65 crore versus 127.07 crore in Q2FY22. Consolidated income from operations stood at 1,234.58 crore in Q2FY23 against 1,190.76 crore in the Q2 of the previous fiscal.

Supreme Petrochem is the country’s largest producer and exporter of polystyrene polymers. Also, the company is the largest exporter of PS from India. The company owns and operates state-of-the-art production facilities from two locations in India, the first at Amdoshi – Wangani Village near Nagothane in District Raigad Maharashtra and the Second in New Manali Town near Chennai in Tamil Nadu. SPL exports its Products to more than 100 Countries around the Globe.

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