On Friday, April 24, 2015, India-based IT major, Infosys Limited (Infosys), announced a 1:1 issue of bonus shares to its shareholders. This meant that each shareholder of Infosys would get one share of Rs. 5 face value for every stock he/she held on the record date . This was not the first time that Infosys had issued bonus shares (Refer to Exhibit I). Nevertheless, this issue was unique as it was the second bonus issue by the company within a span of seven months .

Under the bonus issue, Infosys had allotted 1,148,472,332 fully paid up equity shares during the quarter ended in June 2015. The authorized capital of the company increased from Rs. 6 billion at the end of March 2015 to Rs. 12 billion at the end of March 2016. In the same period, the issued, subscribed, and paid-up equity capital increased from Rs. 5.74 billion to Rs. 11.48 billion..

Finance Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

PayPal (9 USD)

BONUS ISSUE: A POSITIVE SIGNAL? - Next Page>>