Clarification for change in the Dividend Rate due to Stock Split.
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Padam Cotton Yarns clarified that the apparent reduction in its dividend rate from ₹1 per share to ₹0.10 per share is entirely due to a recent stock split. The company's equity shares were sub-divided from a face value of ₹10 to ₹1, increasing the number of shares proportionately. The original ₹1 per share dividend was on the pre-split shares; post-split, it translates to ₹0.10 per share on the new ₹1 face value. The company explicitly stated that the aggregate dividend payout to shareholders remains unchanged.
This is a cosmetic change with no real impact on shareholders — the total dividend received per original share stays the same. The stock split itself may improve liquidity and affordability of the stock, but the dividend yield is unaffected.