Rekha Jhunjhunwala stock jumps 7% after shares worth ₹290 Cr change hands via block deals
Power Grid Corporation of India (NS:PGRD) informed Indian stock market bourses about the bonus share record date citing, "Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is to inform that the Company has fixed the Record Date as 12th September 2023 for the purpose of ascertaining the eligibility of members entitled for issuance of bonus shares of the company in the proportion of 1:3 i.e. 1 (One) equity share of nominal value Rs.10/- (Rupees Ten Only) each for every 3 (Three) equity shares of the nominal value of Rs. 10/- (Rupees Ten Only) each held by Member(s)."
Power Grid bonus share history This is not the first time that Power Grid Corporation of India Limited is trading ex-bonus today. As per the information available on the BSE website, Power Grid shares are traded ex-bonus for issuance of 1:3 bonus shares.
Dividend-paying stock The PSU stock has a history of paying handsome dividends as well. The dividend stock has given away bonus shares twice in 2023. As per the information available on the BSE website, Power Grid Corporation traded ex-dividend on 8th February 2023 for payment of ₹5 per share interim dividend to its eligible shareholders. Similarly, it traded ex-dividend on 8th August 2023 for payment of ₹4.75 per share final dividend to its eligible shareholders.
In 2022, the dividend stock traded ex-dividend stock on three different occasions. On 16th February 2022, Power Grid Corporation traded ex-dividend for payment of ₹5.50 per share dividend to its eligible shareholders. Similarly, it gave ₹2.25 and ₹5.00 per share dividends in August and November of the previous year
Apart from being ex-bonus, the PSU stock will be in focus as it has been declared a successful bidder under Tariff Based Competitive Bidding (TBCB). Power Grid Corporation of India Ltd informed Indian bourses about the development citing, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is to inform that Power Grid Corporation of India Limited has been declared as successful bidder under Tariff Based Competitive Bidding to establish Inter-State Transmission System Project namely “Transmission system for evacuation of power from REZ in Rajasthan (20 GW) under Phase-III Part C1" on Build, Own Operate and Transfer (BOOT) basis. The Letter of Intent (LoI) has been received by Power Grid Corporation of India Limited on 11th September 2023."
Conclusion: In the long run, we can expect PSU to deliver handsome dividends and by the year 2028 -29 (5 years from now) we can expect another bonus or stock split. However, in the short term, we can expect the support near the 140-150 levels and act as an accumulation zone for investors.
Disclaimer: The above article is for self-learning/educational purposes. The analysis was conducted by the following students: G10 and DJ for learning purposes.
“ Investing involves substantial risk. Neither the author nor the publisher, nor any of their respective affiliates make any guarantee or other promise as to any result that may be obtained from using the research/report. While past performance may be analyzed in the research, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own personal financial and/or investment advisor and conducting his or her research and due diligence, including carefully considering whether it is suitable for your particular circumstances, as this research/report does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendation appropriate for you. In the event, that any information, commentary, analysis, opinions, advice, and/or recommendations in the research/report prove to be inaccurate, incomplete, or unreliable or result in any investment or other losses, the author, the publisher, and their respective affiliates disclaim any and all
Thank you to all who attended yesterday's webinar by Aayush Khanna. Those of you who missed the session can access the full recording here: https://shorturl.at/rHQYZ.
Remember, this once-in-a-lifetime offer of a 65% discount on InvestingPro+ via the coupon code PROW629 is only valid till 30th September 2023 and for new subscriptions only.