TCS falls 2% after stock price adjusts for bonus share issue
Tata Consultancy Services shares turn ex-bonus today. TCS has fixed record date as June 2 for determining the entitlement of members to receive bonus shares.
Country’s largest IT services exporter Tata Consultancy Services share price fell nearly 2 percent after the stock adjusted for bonus share issue.
Shares of Tata Consultancy Services (TCSNSE -0.91 %), the largest Indian IT firm by sales, turned ex-bonus on Thursday.
The IT major announced a 1:1 bonus for its shareholders on its 50th anniversary.
The scrip settled 0.80 per cent down at Rs 1,744.80 on BSE. The BSE Sensex finished Thursday’s session 1.19 per cent up at 35,322.38.
The company has set June 2 as record date for the bonus shares. This is the third bonus offering by TCS since listing in 2004.
Tata Consultancy Services shares turn ex-bonus
Those who were holding shares of TCS till Wednesday are eligible to get bonus shares of the IT major. A share is called as “ex-bonus” when a buyer does not get the right to receive the current bonus.
Tata Consultancy Services last month reported a 4.48 per cent year-on-year (yoy) rise in consolidated net profit at Rs 6,904 crore for the March quarter. The figure topped Rs 6,812.5 crore profit estimate by analysts in an ETNow poll.
The board of directors of the company, on April 19, had recommended bonus issue of equity shares in the ratio of one equity share of Re 1 each for every one equity share of Re 1 each held by the shareholders of the company as on the record date.
TCS has fixed record date as June 2 for determining the entitlement of members to receive bonus shares.
The bonus shares, once allotted, will rank pari-passu in all respects with and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate action, recommended and declared after the new equity shares are allotted.
At 10:25 hours IST, the stock price was quoting at Rs 1,744.75, down Rs 14.10, or 0.80 percent on the BSE.