Infosys, the country’s second largest IT services company, on Friday announced 1:1 bonus issue for its shareholders, despite clocking in-line profits in the first quarter of fiscal year 2019.
“The board in its meeting held on July 13, 2018 has considered, approved and 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, as on a record date to be determined,” the company said in a statement.
The move comes as part of the Silver Jubilee celebration of the company's listing on stock markets. “Consequently, the ratio of equity shares underlying the ADS held by an American Depositary Receipt holder would remain unchanged,” the company said.
The bonus issue of equity shares and ADS will be subject to approval by the shareholders, and other applicable statutory and regulatory approvals.
“The bonus shares once allotted shall rank pari passu in all respects,” the company said. The shares will carry the same rights as the existing equity shareholders and shall be entitled to participate in any dividend and other corporate action, recommended and declared after the new equity shares are allotted.
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