SAMP has declared its first & final dividend of Rs.11 per share in form of cash dividend of Rs.5 per share & scrip dividend of Rs.6 which is subject to tax. Without an associate cost each shareholder gets 1 share free of cost for every 38.1405 shares hold if the shareholder does not sell his shares before 1st of April 2015.
About 24 trading day remained before the XD during which there is a possibility of reaching Rs.280 285 levels as attractive stock & cash dividend declared. Value appreciation is apparent provided no sudden impact on market environment.
Stock or scrip dividend increases the number of outstanding shares of the company that results the decreasing of the % of individual shareholding. If the number of outstanding shares of the company increases share price will fall with all other things remaining the same. Such a share price fall will cause to attract more investors.