Infosys pays record 870% dividend for 2017-18
Global software major Infosys Ltd on Friday rewarded its investors with a record 870 per cent aggregate dividend or Rs43.50 per share of Rs5 face value for fiscal 2017-18.
In a regulatory filing on the BSE, the city-based IT firm said its board had agreed to pay out a total dividend of Rs33.50 per share (670 per cent), including Rs20.50 (410 per cent) final dividend and Rs13 (260 per cent) interim dividend and a special dividend of Rs10 per share (200 per cent).
Dividend pay-out includes Dividend Distribution Tax (DDT).
The company's investors or shareholders are promoters, including their families, foreign and domestic institutional investors, employees with stock options and retail worldwide, as its scrip is listed and traded on Indian, European and American bourses.
Total dividend paid in previous fiscal (2016-17) was Rs25.75 (515 per cent) per share, including Rs14.75 (295 per cent) final and Rs11 (220 per cent) interim.
As part of its capital allocation policy, the board has agreed to pay a whopping Rs130 billion ($2 billion) to the shareholders through the special dividend amounting to Rs26 billion ($400 million).
"The board has also identified Rs104 billion ($1.6 billion) to be paid out to investors for fiscal 2018-19 in a manner it will decide during this year," said the company in a statement here.
The policy envisages returning up to 70 per cent of the company's free cash flow of the corresponding fiscal year in a manner to be decided by its board from time to time.
"Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under the International Financial Reporting Standard (IFRS)," noted the statement.
The board reviewed the policy at its Friday meeting keeping in view the company's strategic and operational cash requirements in the medium term.
For the final dividend of Rs20.50 per share, the pay out to investors amounts to Rs53.49 billion ($821 million), including DDT.
The pay-out for total dividend of Rs33.50 per share, including final and interim of Rs13 amounts to Rs87.71 billion ($1.35 billion), including DDT. "The aggregate dividend, including special dividend of Rs10 per share works out to Rs43.50 per share resulting in an aggregate dividend pay-out of Rs113.71 billion ($1.75 billion), including DDT," added the statement.
The company's blue-chip scrip gained Rs6.75 to close at Rs1,169 per share at the end of Friday's trading on the BSE as against Thursday's closing price of Rs1,162.25 and opening price of Rs1,174.50.
The scrip also traded at a high of Rs1,184 and a low of Rs1,150.20 during the intra-day sessions.