Dividend Policy at Oracle Financial Software Services

OFSS, a leading Information Technology (IT) solutions provider to banking and financial institutions, served over 880 institutions across 130 countries around the world. It offered software products and services and consultancy and customer services under different brand names. To meet the requirements of capital expenditure, the management of OFSS had retained all its earnings since 2008-09 and had not paid any dividend since then (Refer to Figure-II for Dividend Payment History of OFSS and Refer to Figure-III for Trends in Profits and Capital Expenditure Investments ). OFSS, an all-equity firm, did not have any external funding in the form of loans and debentures. The only source of finance was the retained earnings. The majority of the stake in the equity share capital was held by Oracle Corporation, the parent company of OFSS..