Software major Infosys Technologies on Tuesday announced three bonus shares for one by capitalising a part of the reserves.
The move would mean three additional equity shares for every one existing share held by the members on a date to be fixed by the board.
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The company, after a five-year gap, announced bonus issue of shares, bringing cheers to its shareholders as well as the stock market.
At its meeting held in Bangalore, the board of directors recommended a final dividend of Rs 15 per share (300 per cent on par value of Rs 5 per share) and a one-time special dividend of Rs 100 per share (2000 per cent on par value of Rs 5 per share).
The board, a company statement said, recommended a stock dividend on the company's American Depository Shares in the ratio of two for one -- one additional ADS for every one existing ADS with the holders of the ADS as on a date to be fixed by the board.
Following the stock dividend on the ADS, the ratio for converting ADS into equity shares shall be fixed at one ADS for one equity share, it said.
Subject to the approval of these proposals by members in the company's annual general meeting on June 12, the board has fixed July 2 as the record date to determine the shareholders and holders of ADSs who will receive the bonus equity shares and additional ADSs respectively, it said.
The bonus equity shares would be credited on July 5 and the additional ADSs on July 6, it said.
