Why did Hindustan Zinc share price slashed by 24 Inr on 6th April?

I had a sound conversation about this with a close friend of mine. He bought 200 share of the implant after the announcement of 1200% dividend on 30 March. He thought that he’ll sell the shares after receiving dividends.

On 6th April he was shocked after seeing his share slashed by 24. A loss of 4800 (24×200) in only one day.
He immediately called me on 6 April noon (below is the conversation)
Hehey Sowmay, have you saw the fluctuation in hind zinc?
Meno, what happened?
HeI’ve 200 share and it dropped by 24 today.
MeLet me look over it.
HeI’ll meet you at evening.
call end
At evening…..
Medon’t get worried about price drop
Meyou didn’t losed even a single penny.
He please elaborate
Mecompany’s price is dropped due to dividend distribution
Hehey are you gone mad? distributing dividends are good sign and even the share distributed the highest dividend ever by a private company. Yeild is 1200%.
he showed me the news


Melet me explain you, when a company distributes dividend, then on ex-dividend date its share price is quoted at discounted price, in your case share dropped to 162 from around 186.(previous price – dividend held for distribution)
Hehell! So it means that I didn’t even benefited a single penny (as its dividend which receive is deducted from the price)
Meyeah, ultimately you got nothing more.
HeHey but I didn’t get any msg notification on dividend deposit in my bank account.
Meprice is discounted on ex- dividend date and dividends are distributed after 1-2 days. Check your account tomorrow or day after.
(I showed him the ex-dividend date)


Hethanks Sowmay.
Then I asked him for a treat on the occasion of dividend income.
conversation end

Lesson – always keep a keen observation on corporate actions. There are many occasion when share price disturbed like split off shares etc.

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