Tide Water Oil declares 1:1 bonus, Rs 200 per share dividend, stock split
It’s a triple whammy for the investors of Tide Water Oil (India). The company announced 1:1 bonus issue, dividend of Rs 200 per share, and stock split from Rs 5 to Rs 2.
Apparently, the share price of Tide Water locked in upper circuit of 5% at Rs 11,458 on the BSE.
The stock had hit a record high of Rs 12,991, on June 7, 2021.
The board of directors of Tide Water Oil, at their meeting held on Thursday, June 10, 2021, approved issue of bonus shares in the ratio of 1:1 i.e. one bonus share for every share held in the company on record date. The company also declared sub-division of the face value of equity shares from Rs 5 to Rs 2. Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity.
The company has fixed July 27, 2021 as record date for ascertaining shareholders for bonus issue and stock split.
The board recommended final dividend of 4,000 per cent (Rs 200 per share) on face value of Rs 5 per share (i.e. before sub-division of shares and bonus issue) for the financial year 2020-21 subject to the approval of the shareholders absorbing a sum of Rs 69.70 crore. The dividend recommended on per share and percentage thereof will be adjusted accordingly after sub-division of shares and bonus issue and the dividend will be distributed to the eligible shareholders within 30 days from the date of the 98th Annual General Meeting.
Tide Water oil has been one of the leading players in the Indian lubricant industry. It manufactures and markets Veedol brand of lubricants. Its repertoire of automotive products includes engine oils for trucks, tractors, commercial vehicles, passenger cars, and two/three wheelers. It also produces gear oils, transmission oils, coolants, and greases for automobiles. For industrial application it manufactures industrial oils, greases, and specialty products like metal working fluids, quenching oils, and heat transfer oils. Tide Water has tie-ups, for the manufacture of genuine oils, with a number of renowned OEMs in the automotive and industrial equipment segment.
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