Rs: 500/- special dividend per share

Im reading the news below , Im very shocking about it.

Strides Arcolab approves special dividend of Rs 500

Read more at: http://www.moneycontrol.com/news/an...endrs-500_1005507.html?utm_source=ref_article.

One more shock to me, the share cannot rise sharply after the announcement.
Pl.explain to me why the stock not rise?

Nothing changes. Stock will drop by Rs.500 on the 19th of December (ex-dividend).

I am shocked too, can someone please explain?

How can any company pay a 500 Rupees dividend per share?

How many days before was it decided to give such a dividend? Could we have bought it in advance for a 500Rs dividend?

companies are designed to maximize shareholder value, if the management does not see better use for the money in their hands it is returned to the shareholder.

even if you wanted the dividend you can buy before ex dividend date, but you would have to be a bonafide shareholder to get tax benefits.

The company had sold one of their divisions and got profit. This is shown as other income in the p&l account in their operating results for the quarter ending 31.12.2013. Because of this the company might have declared 500% special dividend. In case of some extra ordinary situations like this, declaring hefty special dividends is possible. the share price cum dividend Rs.883/- on 18.12.2013 has fallen to Rs.355 to Rs.385/- on 19.12.2013 (ex-dividend)

I want to know was it possible to have bought this stock before the dividend was declared? If it was possible, would it make any profit given that stock price subsequently fell by 500 post dividend?