Sameer Vaze, AGM-Trading Operations at BSE said in case the difference between closing price of ex-date minus one day and the payable dividend is greater than the face value, then the adjusted price will be equal to the closing price reduced by dividend amount.
For this, higher of the closing price across the exchanges shall be considered. “[Conversely], in case the closing price on ex-date minus one day reduced by dividend amount is less than or equal to the face value, then the adjusted price will equal the face value,” he said.
Shares of Majesco traded 0.24 per cent higher at Rs 978 on BSE. The stock goes ex-dividend tomorrow, December 23, 2020.
To understand the new rule, let’s assume that the shares close at Rs 980 on the ex-dividend date minus one day. Then the adjusted price tomorrow will be Rs 980-Rs 974= Rs 6. The payable dividend is Rs 974 per share and face value of Majesco shares are Rs 5. On the other hand, if the stock closes at Rs 978, then the adjusted price will be equal to the face value i.e. Rs 5.
BSE put out the notice on Monday and said the rule will take effect on Tuesday for the equity segment.
