Dividend, Bonus, Stock-Split: 4 Stocks to Watch as They Trade Near Ex-Date

The primary indices, NIFTY and SENSEX, broke their 10-day slump as they closed positive on 5th February 2025. As the market is reviving and many companies’ share prices are taking the upward path, the four major companies- SBI Life Insurance, Metro Brands, Bisil Plast, and Pradhin- are entering the spotlight due to their corporate actions. What are the announcements, how are the stocks trading near ex-date, and how has it affected their share prices? Let’s understand. 

What does it mean by a stock trading near ex-date?

When a stock is trading near its ex-date, it is close to the cutoff point, where investors must own the stock to qualify for upcoming dividends or other corporate benefits. The ex-date is typically set one business day before the record date (in a T+1 settlement system), meaning that any purchase made on or after the ex-date will not carry the right to the declared dividend. 

Say you are considering buying shares of XYZ Ltd., which has declared a Rs.10 dividend per share. The record date is March 10, meaning the ex-date is March 9.

• If you buy the stock on March 8 or earlier, you qualify for the dividend.
• If you buy the stock on or after March 9, you won’t receive the dividend, as the entitlement remains with the seller.

Understanding this timing is crucial, especially for short-term traders and dividend investors looking to optimize their positions.

Shares Trading Near The Ex-date:

The corporate actions taken by four major companies have put them in the headlines for the day as they are trading near ex-date. 

SBI Life Insurance:

SBI Life Insurance, one of India’s most trusted life insurance providers, has been serving customers since its incorporation in October 2000. Offering a diverse portfolio of Protection, Pension, Savings, and Health solutions, the company ensures widespread accessibility through its extensive network of 1,086 offices, nearly 26,000 employees, over 2.4 lakh agents, and multiple corporate partnerships. 

As of the nine months ending December 2024, SBI Life reported assets under management (AUM) of Rs.4,41,700 crore, a 19% year-on-year growth, while its net profit stood at Rs.1,080 crore for the same period. 

Following a Board of Directors meeting on 28th February 2025, SBI Life announced an interim dividend of Rs.2.70 per equity share for FY2024-25, reflecting a 27% payout on the share’s face value of Rs.10. 

Source: MoneyControl

Investors tracking the stock may observe adjustments around the ex-date, as share prices often reflect dividend payouts. Market activity around the stock as of 6th March 2025 is consistent, with no major fluctuation. However, considering the general price movement of stocks that trade near ex-date, it is important to stay vigilant with the price changes in the future. 

Metro Brands:

Metro Brands, a leading Indian footwear retail company, has been catering to diverse consumer preferences since its establishment in 1955. Known for its “Metro” brand and other brands like Mochi and Walkway, the company offers a wide range of footwear and accessories across various price points. With a strong physical store presence across India, Metro Brands has grown into one of the largest specialty footwear retailers in the country.

The company has announced two dividends for FY25—an interim dividend of Rs.3 per share and a special dividend of Rs.14.50 per share. The record date for both dividends is March 7, 2025, determining shareholder eligibility for the payout. The stock will trade ex-dividend on the same day, reflecting the dividend adjustment.

For the December 2024 quarter, Metro Brands reported a net profit of Rs.95.08 crore, a decline of nearly 4% compared to the previous year. Earlier, the stock saw a significant movement on 3rd February, gaining over 7% following the Union Budget announcement, which included incentives for the footwear industry and adjustments in income tax slabs. The stock traded at Rs.1,325, up 7.18% as of February 1. While budget-driven market reactions led to a sharp increase, post the dividend announcement, stock price fluctuations have been minimal

Bisil Plast:

Bisil Plast Limited, formerly known as Bisleri Gujarat Limited, is an Ahmedabad-based company engaged in the wholesale distribution of PET bottles, jars, and related packaging products. Incorporated in 1986, it primarily supplies pharmaceutical, FMCG, and bottling industries. The company rebranded as Bisil Plast Limited in 2008, strengthening its presence in the packaging sector. For the June 2024 quarter, Bisil Plast reported a net profit of Rs.0.52 lakh.

The company has announced a Rights Issue under which 48.62 crore equity shares will be issued at Rs.1 per share. Shareholders holding shares as of the record date, 8th March 2025, will be entitled to 9 new equity shares for every 1 share held. Investors who do not wish to subscribe can renounce their rights. The stock will trade ex-date for the Rights Issue tomorrow, reflecting the valuation adjustment based on the additional shares being issued.

Source: MoneyControl

While Rights Issues can lead to price adjustments due to share dilution, there has been no major fluctuation in the stock price following the announcement.

Pradhin Limited:

Pradhin Limited, formerly Bhagwandas Metals Limited, is a public company engaged in selling food, groceries, cosmetics, and other consumer goods. Incorporated in 1982, the company has expanded its presence across multiple retail categories. For the September 2024 quarter, Pradhin reported net sales of Rs.82.93 crore, reflecting a 3,238.96% increase from Rs.2.48 crore in the same quarter last year. Its quarterly net profit stood at Rs.0.82 crore, up 1,997.7%, while EBITDA rose to Rs.0.70 crore, marking a 1,650% growth.

The company has announced two corporate actions: a Bonus Issue of 2 additional shares for every 1 existing share and a Stock Split, where 1 equity share of Rs.10 face value will be split into 10 shares of Rs.1 each. The record date for both actions is March 7, 2025, determining shareholder eligibility. As the stock approaches the ex-date, no major fluctuation was recorded as of 6th March 2025.

As these corporate actions unfold, investors tracking these stocks may observe price adjustments as they trade near their respective ex-dates. Dividends, rights issues, and bonus shares often lead to price recalibrations based on payout amounts, dilution effects, and broader market sentiment. While some stocks have seen significant movements in recent weeks, the fluctuations post-announcement have remained minimal in some instances.

For those monitoring these stocks, staying informed about corporate actions, record dates, and market reactions is essential to understanding how such events might impact their holdings. Before making investment decisions, conducting thorough research and analyzing stock performance trends can help evaluate potential opportunities and risks.

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