Shares of RailTel Corporation of India Ltd declined by 1.63% to Rs 296.50 on Wednesday, April 2, as the stock traded ex-dividend. The company had declared an interim dividend of Rs 1 per share, with both the ex-dividend and record date falling on the same day.
The stock opened lower at Rs 294.95 compared to its previous close of Rs 301.40. This price correction reflects the market adjusting for the value of the declared dividend, which is a common occurrence when a stock goes ex-dividend.
RailTel joins MSTC and ADC India Communications in trading ex-dividend today. Investors who purchased RailTel shares before April 2 will be eligible for the interim dividend payout.
Ex-dividend trading typically results in a short-term drop in share price, equivalent to the dividend amount, as new buyers are not entitled to receive the upcoming dividend.
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