Dividend paying stock hits 52-week high ahead of record date. Do you own?

Textile company has fixed record date for dividend payment on 21st October 2022 and the stock has been highly bullish ahead of dividend payment. In last one month, Jai Corp share price has surged from around ₹160 apiece to ₹210 per share levels, ascending to the tune of more than 30 per cent in this time. In last six months, this stock has surged to the tune of around 75 per cent.

Informing stock market exchanges about dividend payment, Jai Corp said in its exchange filing, “The board of directors at their meeting recommended a dividend of Re 0.50 per share on 17,84,49,410 fully paid-up equity shares of face value Re.11- each for the financial year 2021-22. No dividend was recommended on the 44,600 equity shares forfeited but not cancelled or re-issued.”

On payment of dividend, Jai Corp informed Indian bourses citing, “The 37th Annual General Meeting of the members of the Company will be held on Monday 31st October, 2022 and the said dividend, if approved will be paid to those shareholders, whose names appear in the Register of Members at the close of business on Monday 24th October, 2022.”

Looking at the sudden price appreciation in Jai Corp shares, BSE had sought clarification from the textile company in September 2022. The textile company replied to that BSE query citing, “We have no information as to the reason for the movement in price of the Company’s shares at BSE Limited, in the recent past. We also have no information/announcement to make at this point of time with respect to the Company which, in our opinion, may have a bearing on the price behavior of the Company’s shares.”