VA Tech is top loser on the BSE
VA Tech Wabag is currently the top loser on the BSE, down by a huge 52% or by Rs.905 to Rs.817 from yesterday’s close of Rs.17121.85.
There is no need to be alarmed at this huge over 50% drop in the price as this is a logical fall – the stock turned ex-bonus; it is has booked 27th March as the record date for the purpose of ascertaining the entitlement of the members for the issue of bonus shares in the ratio of 1:1 by capitalizing the securities premium reserve account of the company. Obviously, this is profit booking on the counter ahead of the record date tomorrow.
Date set by a company on which the investor must own shares, to be eligible for dividend, share split, bonus, rights issue or other capital gains as declared / announced by the company. It is the date established by the company for determining the shareholders who are entitled to receive dividend, bonus or rights shares of the company.
Ex-date is the date on which the seller, and not the buyer, of a stock will be entitled to a recently announced dividend, bonus or other corporate action. The ex-date is usually a business day prior to the record date, since T+2 trading cycle is followed for clearing and settlement of trades in India.