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, 

  • Explore corporate actions on Moneycontrol
  • Analyze:
    • Dividends
    • Splits
    • Bonus issues

Perform Wipro bonus case analysis.

 

You are advising clients on:

“Should they buy, hold, or sell?”

 

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.

1

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. 

2

3

Click on the Dividend Menu next to Bonus Menu to see the dividend released by the companies

3

Click on the Bonus Menu option as shown in the menu bar.

3

4

Click on the Splits Menu to view the Splits of Companies 

5

Click on the RIGHTS menu to the data of Rights issuance of some Companies.

6

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.

1

Search wipro in search bar and click on (wipro, INE075A01022, 507685)

2

You will be able to see Wipro Company Details.

3

Scroll down little you will be able to see small navigation button known as corporate action 

3

Click on the corporate action button it will navigate you towards all the corporate actions of Wipro.

 

4

Now we need only bonus part so need to click on bonus button, the recent tab of bonuses will open as shown below.

5

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

6

 The order will get executed automatically when option price come at exact price of 95

7

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.

YearBonus RatioNumber of Stocks
​1970​10
19711:313
19811:126
19851:152
19871:1104
19891:1208
19921:1416
19951:1832
19972:12496
20042:17488
20051:114976
20102:324960
20171:149920
20191:366560
20241:1133120

 

Good Work!!

You’ve successfully completed "Analysis of Corporate Action Using MoneyControl" .

In this we had discussed following Pointers:

  • Corporate Action
  • Different Corporate Actions
  • Wipro Case Study

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

Lab4_IB4

By Content ITV

Lab4_IB4

  • 8