Premium: Strides Arcolab Declares Rs. 500 Dividend, a 56% Yield – Good Deal?

2 comments Written on December 15th, 2013 by
Categories: Premium, Stocks

This is an archive for Capital Mind Premium subscribers, sent on 14th December 2013.

The Case of Strides Arcolab

Strides Arcolab recently sold it’s Agila Specialties division to Mylan for $1.75 billion. They will now use the money to cut out short term debt and distribute $525 million to shareholders, which translates to Rs. 500 per share. (They have about 6 crore shares)


The rest of this content is only available to premium members.

Register for a premium membership today! Apart from this content you will get our proprietary research and weekly newsletter too!

Subscription

Already a subscriber? Log in now!

Related Posts Plugin for WordPress, Blogger...

Tags:

About the Author:
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@gmail.com.

2 comments “Premium: Strides Arcolab Declares Rs. 500 Dividend, a 56% Yield – Good Deal?”

Hi Deepak,

are you sure about the eligibility for short term capital losses? i heard that you need to have bought BOTH 3 months before the ex data and hold it for 3 months after ex date

regards
anish

Anish: It’s either. Section 94(7) is like this:

Where—
(a) any person buys or acquires any securities or unit within a period of three months prior to the record date;
(b) such person sells or transfers—
(i) such securities within a period of three months after such date; or
(ii) such unit within a period of nine months after such date;
(c) the dividend or income on such securities or unit received or receivable by such person is exempt,
then, the loss, if any, arising to him on account of such purchase and sale of securities or unit, to the extent such loss does not exceed the amount of dividend or income received or receivable on such securities or unit, shall be ignored for the purposes of computing his income chargeable to tax.

This means either you buy three months prior: (a) is invalid, or you sell more than three months after: (b) is invalid. if both (a) and (b) are valid, then the dividend stripping is not allowed.


Leave a Reply