Infosys announced a 1:1 bonus for its shareholders on Friday. A 1:1 bonus means that the shareholder will get one share for each share held. The board of Infosys, in its meeting held on July 13, 2018, recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, the IT major said in a regulator filing. The Infosys board approved and recommended the issue of bonus shares to celebrate the 25th year of company’s public listing in India and to further increase the liquidity of its shares, it noted.
“The Bonus shares once allotted shall rank pari-passu in all respects and carry the same rights as the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted,” Infosys said.
The bonus issue of equity shares and ADSs will be subject to shareholder and regulator approvals, Infosys added.
Infosys had said in April that it would pay up to Rs 13,000 crore to shareholders including Rs 2,600 crore through special dividend. Infosys had also said it would continue with its policy of returning up to 70 per cent of its free cash.
Meanwhile, Infosys reported a net profit of Rs. 3,612 crore for the quarter ended June 2018, as against Rs. 3,690 crore in the previous quarter. The country’s second largest software services exporter said its revenue stood at Rs 19,128 crore. In dollar terms (constant currency), Infosys reported a revenue of $2,831 million in Q1. That marked a quarter-on-quarter growth of 0.9 per cent, and a year-on-year increase of 6.8 per cent. (Also read: Infosys profit falls to Rs. 3,612 crore in June quarter)
For the financial year ended March 31, 2018, Infosys had reported an increase of 11.7 per cent in its consolidated net profit at Rs. 16,029 crore.
Source: NDTV Profit