This company just gave an interim dividend of 19,480%

Its board has approved payment of an interim dividend of Rs 974 per equity share for FY21

In news that could send investors rubbing their eyes in disbelief and wonder, an IT company on Tuesday announced an interim dividend yield of 19,480% for FY20-21.

Majesco, in a regulatory filing, announced that its board approved payment of an interim dividend of Rs 974 per equity share for the financial year 2020-21. This means that for each share with face value of Rs 5, the dividend yield is nearly 19,480%.

Majesco's stock jumped in trade on this news, hitting a 52-week high of Rs 1,019 per share on BSE during the market opening session. At around 12.07, its shares were trading at Rs 989.95, up by Rs 16.35 or 1.68%.

The interim dividend payout amounts of Rs 2,788.4 crore for a shareholder base of 28.577 million shares.

The company added that the balance cash reserve of Rs 103 crore will be distributed subject to board and regulatory approvals.

Majesco, which provides technology, expertise, and leadership support to insurers, has fixed December 25 as the record date. It plans to carry out dividend payout at earliest on December 30, 2020.

The company recorded a consolidated net profit of Rs 2,376.54 crore in Q2 2020, steeply higher than the net profit of Rs 16.79 crore a year ago.