Infosys has fixed record date as December 3 for the purpose of allotment of bonus shares. That means, the stock will turn ex-bonus on December 2.
The stock jumped 2.26 per cent at Rs 4,240 on the BSE.
The company has proposed to issue bonus shares in the ratio of one share for every one share held by investors (1:1).
Infosys has fixed record date as December 3 for the purpose of ascertaining the eligible shareholders who would be entitled to receive bonus shares.
Following the bonus issue, the equity base of Infosys will double. Earnings per share (EPS) will fall to that extent.
This would be the third bonus issue by the company in the last 10 years. In 2004, it rewarded the shareholders with three bonus shares for every one share (3:1). In 2006, the company had announced 1:1 bonus issue.