Infosys rewards investors by giving record 870% dividend for 2017-18

As part of the Infosys capital allocation policy, the firm’s board has agreed to pay ₹13,000 crore to shareholders through the special dividend amounting to ₹2,600 crore.

Global software major Infosys Ltd on Friday rewarded its investors with a record 870% aggregate dividend or ₹43.50 per share of ₹5 face value for fiscal 2017-18.

In a regulatory filing on the BSE, the city-based IT firm said its board had agreed to pay out a total dividend of ₹33.50 per share (670%), including ₹20.50 (410%) final dividend and ₹13 (260%) interim dividend and a special dividend of ₹10 per share (200%).

Dividend pay-out includes Dividend Distribution Tax (DDT).

The company’s investors or shareholders are promoters, including their families, foreign and domestic institutional investors, employees with stock options and retail worldwide, as its scrip is listed and traded on Indian, European and American bourses.

Total dividend paid in previous fiscal (2016-17) was ₹25.75 (515%) per share, including ₹14.75 (295%) final and ₹11 (220%) interim.

As part of its capital allocation policy, the board has agreed to pay a whopping ₹13,000 crore ($2 billion) to the shareholders through the special dividend amounting to ₹2,600 crore ($400 million).

“The board has also identified ₹10,400 crore ($1,600 million) to be paid out to investors for fiscal 2018-19 in a manner it will decide during this year,” said the company in a statement here.

The policy envisages returning up to 70% of the company’s free cash flow of the corresponding fiscal year in a manner to be decided by its board from time to time.

“Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under the International Financial Reporting Standard (IFRS),” noted the statement.

The board reviewed the policy at its Friday meeting keeping in view the company’s strategic and operational cash requirements in the medium term.

For the final dividend of ₹20.50 per share, the pay out to investors amounts to ₹5,349 crore ($821 million), including DDT.

The pay-out for total dividend of ₹33.50 per share, including final and interim of ₹13 amounts to ₹8,771 crore ($1,349 million), including DDT.

“The aggregate dividend, including special dividend of ₹10 per share works out to ₹43.50 per share resulting in an aggregate dividend pay-out of ₹11,371 crore ($1,749 million), including DDT,” added the statement.

The company’s blue-chip scrip gained ₹6.75 to close at ₹1,169 per share at the end of Friday’s trading on the BSE as against Thursday’s closing price of ₹1,162.25 and opening price of ₹1,174.50.

The scrip also traded at a high of ₹1,184 and a low of ₹1,150.20 during the intra-day sessions.