Bonanza for Infosys shareholders

Bonanza for Infosys shareholders

The company announces Rs 43.50 dividend per share

Bonanza for Infosys shareholders

Signalling deviation from the historical policy of maintaining huge cash reserves, Infosys, India's second largest IT services company, on Friday decided to distribute up to Rs 13,000 crore ($2 billion) to its shareholders, other than dividend of Rs 8,771 crore.

Of this amount, the company has announced a special dividend of Rs 10 per share ($0.15 per ADR) resulting in a payout of approximately Rs 2,600 crore (approximately $400 million) in June 2018.

For remaining Rs 10,400 crore (approximately $1,600 million), the company has decided to pay it out to the shareholders for the Financial Year 2019. A decision on the ways and method of the rollout will be taken by the board in its subsequent meetings, the company said in a statement.

For the Financial Year 2018, the board of the company has recommended a final dividend of Rs 20.50 per share ($0.31) amounting to Rs 5,349 crore ($821 million) including Dividend Distribution Tax (DDT). After including the interim dividend of Rs 13 per share, the total dividend for Financial Year 2018 will amount to Rs 33.50 per share resulting in a payout of Rs 8,771 crore ($1,349 million) including DDT, which will amount to approximately 70% of free cash flow for the Financial Year 2018.

The total dividend of Rs 33.50 per share is approximately 30% higher than total dividend of Rs 25.75 per share for Financial Year 2017.

The aggregate dividend including the special dividend of Rs 10 per share ($0.15 per ADR) works out to Rs 43.50 per share ($0.67) resulting in an aggregate dividend payout of approximately Rs 11,371 crore (approximately $1,749 million), including DDT.

Last financial year as well, the company had announced a share buyback worth Rs 13,000 crore, priced at Rs 1,150 per scrip.