Strides Arcolab stock falls nearly 19% on ex-dividend

Shares of Strides Arcolab nosedived nearly 19 per cent amid massive selling by investors as the stock went ex-dividend on Friday.

The company's scrip tumbled 18.41 per cent to settle at Rs 649 on the BSE. During the day, it plunged 18.88 per cent to Rs 645.20.

At the NSE, the stock plummeted 18.79 per cent to Rs 647.10.

Led by losses in these stocks, the company's market value fell by Rs 872.19 crore to Rs 3,865.81 crore.

Marketmen said profit-booking pulled down the stock.

The board of directors of the company at its meeting held on October 7, 2014, have approved a special dividend of Rs 105 per equity share of Rs 10 each to the shareholders.

The said special dividend will be paid on or after October 22, 2014, Strides Arcolab had said in a filing to the BSE on October 7.

Strides Arcolab had said that record date for determining the eligibility of shareholders for payment of special dividend will be October 17, 2014.

The issuing company fixes a particular date which is termed as record date when the investor must own shares in order to be eligible to participate in events like receiving dividend, bonus shares.

An ex-dividend is classification of trading shares when a declared dividend belongs to the seller rather than the buyer.