Mindtree shares plunged over 11 per cent intraday on Wednesday as shares of the IT company started trading ex-bonus. Ex-bonus is the day from which shareholders of the stock will not be entitled to get bonus shares. If you were holding the share prior to ex-bonus date you would get the bonus share.
At 11.33 am, shares of Mindtree were trading 11.18 per cent down at Rs 687. The scrip opened at Rs 749.70 and had touched a high and low of Rs 749.70 and Rs 684.20, respectively, in trade so far. Later, the share price ended 11.56 per cent down at Rs 684.05.
According to traders, investors adopt popular “bonus stripping” strategy of booking a loss on ex-bonus day to avail of tax benefit.
The share price of the company slid 2.69 per cent on Tuesday after the IT company informed stock exchanges that it sees a marginal quarter-on-quarter revenue growth in Q4 on an organic basis due to delay in the commencement of few projects in the retail and Consumer Packaged Goods vertical and Banking, Financial Services and Insurance (BFSI) vertical.
In a BSE filing, Mindtree on Tuesday said, “Operating margins for the quarter are expected to decline as compared to Q3.
With the fall of 11.54 per cent in Wednesday’s trade, Mindtree shares wiped off their gains of 2016. On a year-to-date basis, the scrip gained 7.36 per cent to Rs 773.50 till March 8. The share price of the company was trading at Rs 720.50 (adjusted to bonus) on January 1 this year.
After the Q4 guidance by Mindtree, Religare cut its recommendation on Mindtree shares to ‘Sell’ from ‘Hold’.
(With inputs from Reuters)
