Corporate Actions & IPOs

A corporate action is a company event that changes share count, price reference, or cash flows to shareholders. Brokers and depositories adjust holdings automatically for most listed actions — but you should understand the economics.

• Dividend: Cash (or sometimes stock) distributed from profits. Price often drops roughly by the dividend amount on ex-date.
• Stock split: More shares, lower price per share — economic ownership unchanged (e.g. 1→2 split).
• Bonus issue: Free additional shares from reserves; similar dilution of price, same overall claim on equity.

Key dates: announcement, record date, ex-date. You generally need to be a shareholder before the ex-date to receive the benefit under exchange rules.

• Rights issue: Existing holders may buy new shares at a stated price in proportion to holdings — can be renounced/traded in some cases.
• Buyback: Company offers to repurchase shares; reduces share count if successful. Participation is optional within the offer window.

• IPO: Company offers shares to the public via book-building or fixed price; allotment may be lottery-based for retail.
• OFS (Offer for Sale): Existing shareholders (often promoters) sell on the exchange platform — different from a fresh IPO issue.
• SME IPOs: Smaller exchange segments with different liquidity and disclosure profiles — higher risk for beginners.

Listing day gaps are common. Treat IPOs as high-uncertainty events, not guaranteed listing gains.