Hindustan Lever (HLL) proved strong on the bourses today in tandem with other heavyweight stocks, as foreign institutional investors (FIIs) were seen pursuing the counter.
And what is surprising is that this support in the stock comes in the wake of its turning ex-dividend (the dividend outlay is Rs 7.75 per share).
The stock closed today on the BSE at Rs 171.10, up 0.65 per cent. Earlier in the day it hit a high of Rs 172. Total volumes registered on the BSE counter were 9.61 lakh shares.
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HLL has now moved up 26.6 per cent from its 52-week low of Rs 135 on May 9. In the one year prior to that, the scrip has lost 36 per cent from its 52-week high of Rs 212 on May 14, 2002, to its 52-week low of Rs 135 on May 9.
The special dividend includes bonus debentures of Rs 6 per share and payment of a special dividend of Rs 2.76 per share to non-resident shareholders. The special dividend will be paid on or after July 8.
With the change in the Finance Bill regarding dividend tax, the special dividend payable will be reduced by the distribution tax payable on the total scheme amount of Rs 8.76 per share. After tax, the special dividend works out to Rs 7.75 per share.
Dealers say the rise in the stock is on some considerable buying by FIIs. Other players are also active on the counter on the reckoning that the monsoon will be satisfactory this year. As it is, a large part of HLL