Shares of ADC India Communications Ltd fell sharply by 7.40% to Rs 1,315.95 in early trade on April 2, as the stock turned ex-dividend. The company has declared an interim dividend of Rs 25 per share, and both the ex-dividend and record date are set for today.
The drop in stock price reflects the market’s adjustment for the value of the dividend payout. The company’s shares had closed at Rs 1,421.15 in the previous session and opened lower today amid ex-dividend trading activity.
ADC India Communications joins RailTel Corporation of India and MSTC, whose shares are also trading ex-dividend today. Ex-dividend stocks generally trade at a discount equal to the dividend payout, as new buyers are not entitled to receive the upcoming dividend.
Dividends are paid to all shareholders whose names are recorded in the company’s books as of the record date.
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