Majesco stock impacted by BSE’s latest rule
Last updated: 23 Dec, 2020 | 08:16 am
We had earlier advised our users to book profits if they are in the higher end of the income tax slabs due to effective lower tax liability while asking the users with zero tax liability to hold the stock for dividend benefit.
In case you have not booked any profits, we recommend you to hold the stocks. We are keeping an eye on the development and will alert you if any action is required.
BSE sets a floor price for ex-dividend dates
- BSE said that if the stock price of a company goes negative after the ex-dividend date the market price will be set as the face value of the shares, thus setting a floor price for the stocks going ex-dividend.
- This came after Majesco declared a dividend of ₹974, greater than the prevailing market price at the time of declaration, thus giving rise to a lot of speculation on the possibility of a negative stock price.
In our previous report (Read here) we had analysed why the company had given such a huge dividend and what are the future plans.
Shares of Majesco are trading at ₹12.20 ex-dividend, up 4.72% from the adjusted price of ₹11.45. The adjusted price is derived by subtracting the dividend (₹974) from the last close price (₹985.45).