#Majesco has announced a Rs 974 dividend with the current market price at ~990. On the face of it, there is scope for an obvious arbitrage but it’s not that simple. Does Majesco qualify as a dividend play?

A short thread

First thing to understand with any major dividend is where did the company get all this cash from and is it sustainable?
Source check : The company sold its primary income generator - the US biz arm earlier this year.
Sustainable check: Hell, no.

The company will cease to have any real value post the dividend payout and will likely de-list/promoter exit. Ex-dividend price would be nominal single or early double digits.

Okay so you sell the stock at a loss but gain the commensurate value in dividend. Nets off right? Would work until last year. 2020 strikes again.
Dividend tax from this FY is taxed at the slab rate so net benefit would be lower. Efficient markets rarely leave money on the table

The only possible minor arbitrage I see is if someone is in a tax slab lower than the STCG rate of 15% (does not apply to people under basic exemption limit who do not have to pay STCG tax either).

They could pay tax on the dividend at slab (say 10%) and set off the net short term capital loss against any short term capital gains (it was the year of trading after all) and avoid paying 15% on the same.

Minor and not worth the hassle imo.

Disclaimer: Not a tax advisor, just my limited views on the matter.