Infosys Shares Go Ex-Bonus, Prices Drop Below Rs. 1,000

Sharemasterindia.com: Infosys opened at Rs. 980 on Monday as against its last closing price of Rs. 1,976 as the stock turned ex-bonus with effect from June 15. India's second largest outsourcer had announced a 1:1 bonus issue for shareholders on April 24.

In a bonus issue, investors get extra shares, but their holding in the company (in terms of percentage) remains the same. As a result, if an investor had 10 Infosys shares, the number would have doubled to 20 today, but the price of each share would be down by around half.

Infosys shares also went ex-dividend today; the board had recommended a final dividend of Rs. 29.50 per equity share (equivalent to Rs. 14.75 per share after 1:1 bonus issue) for the financial year ended March 31, 2015.

As of 12.12 p.m., Infosys shares traded 0.64 per cent higher at Rs. 994.70. The stock had earlier hit an intraday high of Rs. 998.85 and an intraday low of Rs. 968.50.