Infosys Q1: IT major announces 1:1 bonus issue to mark 25 years since listing

Information technology major, Infosys, on Friday announced a bonus issue in the ratio of 1:1. The issue was announced to mark the company’s 25th anniversary since its listing as well as to increase liquidity of shares.

The decision came along with the firm’s June quarter earnings announcement

The Board of Directors has considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depository Share (ADS) for every ADS held, as on a record date to be determined,” it said in a notification to exchanges.

The Bonus shares once allotted shall rank pari-passu in all respects and carry the same rights as the existing equity shares.

They shall be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted, the company further said in the filing. The Bonus equity shares will be issued out of retained earnings, available as at June 30, 2018.

Ratio

The company explained that 1(one) equity share of Rs 5/- each fully paid up for every 1(one) equity share of Rs 5/- each fully paid up held as on the record date to be determined.

Details

Pre- bonus paid up share capital as on June 30, 2018- 10,920,635,455 divided in to 2,184,127,091 equity shares of Rs 5/- each.

Post- bonus paid up share capital would be - 21,841,270,910 divided in to 4,368,254,182 equity shares of Rs 5/- each.

Deadline

The Bonus shares will be credited/dispatched within 2 months from the date of Board approval i.e. by September 12, 2018.

Source : Moneycontrol