Infosys shares soar on bonus issue; market cap all time high
Despite lackluster Q1 results, Infosys shares rallied more than 5% in Indian bourses early on Monday on the back of a 1:1 bonus issue
Shares of Infosys Ltd rallied more than 5% on Indian bourses during morning deals on Monday on the back of a 1:1 bonus issue declared on Friday after the markets closed.
India’s second-largest software services exporter announced its first-quarter results on Friday, with profits and operational numbers falling short of analysts’ estimates, while revenue and financial year 2019 guidance met expectations.
Infosys posted a profit of 36.12 billion rupees (US$526.9 million) in the three months to June, below estimates because of a one-off charge of $39 million related to the fair-value reduction of its Panaya unit.
In contrast, its rival and market leader Tata Consultancy Services beat analysts’ estimates on all parameters.
The board of directors of Bangalore-based software giant Infosys on Friday approved a bonus issue and stock dividend of American depositary shares to mark the 25th year of stock-market listing.
With this surge in share prices, Infosys breached 3 trillion rupees in market cap for the first time. At Friday’s closing, Infosys held a market capitalization of 2.85 trillion rupees on the Bombay Stock Exchange.