Corporate Actions, Dividends & Governance

A court-supervised process under company law for restructuring a company's capital, mergers, demergers or compromises with creditors.

Test: the scheme is approved by the required majorities of shareholders and creditors and sanctioned by the National Company Law Tribunal qualitative

A company purchasing its own shares from shareholders, reducing the share count.

Post-Buyback EPS = Net Profit / (Shares Outstanding - Shares Bought Back) ₹ crore

Corporate Actions, Dividends & Governance

The quarterly disclosure showing how a listed company's shares are distributed across shareholder categories.

Test: the filing reports promoter, institutional and public holdings, along with pledged shares and holders above 1% %

Corporate Actions, Dividends & Governance

A one-off dividend, usually much larger than the regular payout, arising from an unusual event.

Test: the dividend is explicitly designated as non-recurring and is not part of the stated dividend policy ₹

Corporate Actions, Dividends & Governance

A shareholder resolution requiring at least three-quarters of votes cast in favour to pass.

Test: votes in favour are at least three times the votes against among members voting %

Corporate Actions, Dividends & Governance

The distribution of a subsidiary's shares to a parent's shareholders, creating a separately listed company.

Test: shares in the subsidiary are distributed to the parent's shareholders pro rata, without consideration qualitative

Corporate Actions, Dividends & Governance

A division of each existing share into a larger number of shares with a proportionally lower face value.

New Share Count = Old Count x Split Ratio; Adjusted Price = Old Price / Split Ratio; Face Value divides by the same ratio shares

Corporate Actions, Dividends & Governance

A company controlled by another company, whose accounts are consolidated line by line into the parent's.

Test: the parent controls the composition of the board or holds more than one half of the total voting power qualitative

Corporate Actions, Dividends & Governance

The number of acquirer shares issued for each share of the target in a share-based merger.

Swap Ratio = Value per Target Share / Value per Acquirer Share, as determined by the valuers ratio (x, times)

Corporate Actions, Dividends & Governance

Shares issued to employees or directors at a discount, or for non-cash consideration such as know-how or value addition.

Test: shares are issued to employees or directors for consideration other than cash, or at a discount, under a special resolution qualitative