Balrampur Chini Mills dividend: Shares to trade ex-dividend from today; record date on February 14

Shares of Balrampur Chini Mills will trade ex-dividend starting Friday. The sugar company has fixed ex-date for Rs 2.5 per equity share as February 11, while the record date for finalising eligible shareholders name in the company's book is February 14.

A dividend is the distribution of corporate profits to eligible shareholders. Dividend payments and amounts are determined by a company's board of directors.  The record date is the cut-off date fixed by a company to determine which shareholders would be eligible to receive a dividend announced by the company. 

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Shares of Balrampur Chini Mills ended marginally lower by Rs 2.50 to Rs 440.55 a share on the BSE on Thursday. As on February 10, technical details of the sugar company shows that Balrampur Chini Mills shares gained 5 per cent in the last one month, 29% in six months and 177% in one year on the National Stock Exchange

Earlier, the company in a BSE filing on February 4 had said, “The Board of Directors of Balrampur Chini Mills Limited in their meeting held on 2nd February, 2022 has approved the interim dividend of Rs 2.50 per equity share for the financial year 2021-2022. Record date for the Interim Dividend is fixed as Monday, 14th February, 2022.”

It further informed that in line with Income-tax rules, the Company will be required to withhold taxes at the prescribed rates on the dividend paid to its shareholders. "No tax will be deducted on payment of dividend to the resident individual shareholders if the total dividend, paid during Financial year ('FY') 2021-22, does not exceed Rs 5,000," it added. 

Between July 2001 and February 2022, the company has declared dividend 12 times and has also offered buyback twice between 2019 and 2020. 

Balrampur Chini Mills shares traded on 52-week high value of Rs 459.25 on January 2022 and touched 52-week low of 157 on February 15, 2021, on the BSE. 

Recently, ICICI Securities has given a target of Rs 600 per share for Balrampur chini Mills in one year time frame. This translates into 25% on closing price of Rs 440.55 a share on the BSE on Thursday. 

Balrampur Chini Mills Limited ('BCML') is one of the largest sugar manufacturing companies in India with a significant strength in the manufacture of downstream products like power (co-generation) and ethanol.