HCL Tech to consider 2-for-1 stock split

Indian software services company HCL Technologies Limited will hold a board meeting on September 4 to consider a two-for-one stock split, a company spokeswoman said on Monday.

"It is happening. We are going to have an extraordinary general meeting to ratify it," she said, confirming a Press Trust of India report at the weekend.

After shareholder approval, each HCL Technologies paid up share of four rupees will be split into two equity shares of Rs 2 each, a company statement said on Monday.

There will be a total of 280 million shares outstanding after the split, the statement added.

"The decision to go for a stock split is being taken to make the share more affordable for the retail investor, including employees, leading to increased retail interest and higher liquidity," the statement quoted HCL Technologies chairman Shiv Nadar as saying.

Earlier this month, the firm reported a sharp increase in net profit for 1999-2000 (July-June) to Rs 2 billion from Rs 1.01 billion the previous year. The company had reported a sharp rise in Internet and e-commerce business earlier this year.

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