Infosys Hits 52-Week High As Shares Turn Ex-Bonus

Shares of Infosys surged as much as over 4 per cent to touch a new 52-week high on Tuesday, as the shares traded ex-bonus. Infosys shares closed 2.64 per cent higher at Rs 735.65 on stock exchange BSE. Infosys had announced a 1:1 bonus for its shareholders in July this year. Wednesday, September 5, 2018 has been fixed as the record date for the purpose of allotment of bonus shares/stock dividend. At the day's highest point, shares in the IT major jumped 4.4 per cent to Rs 748.35 on the BSE. 

A 1:1 bonus means that the shareholder will get one share for each share held. According to a regulatory filing, the board of Infosys had in its meeting held in July recommended a bonus issue of one equity share for every equity share held, and a stock dividend of one American Depositary Share (ADS) for every ADS held.

The Infosys board had approved and recommended the issue of bonus shares to celebrate the 25th year of company's public listing in India and to increase the liquidity of its shares.

"Infosys shares were trading higher today on buying demand from investors after the stock adjusted for bonus issue. Meanwhile, the weakening rupee also boosted sentiment", said Hemen Kapadia, KR Choksey Shares & Securities.

According to AK Prabhakar, Head of research, IDBI Capital, "IT stocks outperformed today with the Nifty IT index 2 per cent up. Equity investors indulged in wide scale profit booking which led to the surge in Infosys trading."

Meanwhile, Infosys reported a net profit of Rs. 3,612 crore for the quarter ended June 2018. For the financial year ended March 31, 2018, Infosys had reported an increase of 11.7 per cent in its consolidated net profit at Rs. 16,029 crore.

On the other hand, stock markets extended losses to yet another day amid fund outflow-related concerns. BSE benchmark index Sensex fell 154 points to close at 38,157 on Tuesday, while the NSE Nifty declined 62 points to settle at 11,520.