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Analysis of Corporate Actions using Moneycontrol
Business Scenario
Your manager assigns a new task,
“A client is confused about corporate actions like bonus, dividends, splits. I want you to analyze how these impact stock prices.”
Pre-Lab Preparation
You are now part of the Equity Research Team
Your Mission is to,
Perform Wipro bonus case analysis.
You are advising clients on:
“Should they buy, hold, or sell?”
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Topics: Corporate Action 1) Preference shares 2) Rights issue 3) Bonus issue 4) Purpose of equity issuance 5) Equity capital markets overview |
Open any browser and type Upcoming Corporate action By MoneyControl as shown in the image below.
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Task 1: Explore and Analyze Corporate Actions across Companies on Moneycontrol
Click on the Corporate Action from Top Listed Companies and you will be directed to the Corporate Action Page.
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Click on the Dividend Menu next to Bonus Menu to see the dividend released by the companies
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Click on the Bonus Menu option as shown in the menu bar.
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Click on the Splits Menu to view the Splits of Companies
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Click on the RIGHTS menu to the data of Rights issuance of some Companies.
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Now you able to explore corporate action of all the companies now your manager given you task to calculate the bonuses issued by wipro company
Let us navigate towards the wipro corporate action as follow.
Task 2: Calculate and Interpret Bonus Issue Impact using Wipro Case Study
Search money control website as shown in below image and click on the link it will direct you to the Money Control Website.
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Search wipro in search bar and click on (wipro, INE075A01022, 507685)
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You will be able to see Wipro Company Details.
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Scroll down little you will be able to see small navigation button known as corporate action
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Click on the corporate action button it will navigate you towards all the corporate actions of Wipro.
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Now we need only bonus part so need to click on bonus button, the recent tab of bonuses will open as shown below.
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As we need to calculate all the bonuses from the beginning we need to click on see more button to explore whole bonus section of wipro company
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The order will get executed automatically when option price come at exact price of 95
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Make sure you understand the bonus ratio eg. if there is 1:3 ratio means every 3 shares that you held you will receive 1 extra share with newly adjusted price
Example- If you held 10 shares only 9 shares eligible to receive 3 extra shares your new quantity of shares will be 13.
| Year | Bonus Ratio | Number of Stocks |
|---|---|---|
| 1970 | 10 | |
| 1971 | 1:3 | 13 |
| 1981 | 1:1 | 26 |
| 1985 | 1:1 | 52 |
| 1987 | 1:1 | 104 |
| 1989 | 1:1 | 208 |
| 1992 | 1:1 | 416 |
| 1995 | 1:1 | 832 |
| 1997 | 2:1 | 2496 |
| 2004 | 2:1 | 7488 |
|---|---|---|
| 2005 | 1:1 | 14976 |
| 2010 | 2:3 | 24960 |
| 2017 | 1:1 | 49920 |
| 2019 | 1:3 | 66560 |
| 2024 | 1:1 | 133120 |
Good Work!!
You’ve successfully completed "Analysis of Corporate Action Using MoneyControl" .
In this we had discussed following Pointers:
Checkpoint
Next-Lab Preparation
Topic : Market Participants & Infrastructure
1) Role of regulators. SEBI (capital markets). 2) RBI (banking & forex)
3) Global regulators (SEC, FCA). 4)Importance of compliance in operations
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