B G Shirsat: Infosys turns Rs 10,500 to Rs 2 cr!

No of shares

1993

IPO

100 19941:1 bonus200 19971:1 bonus400 19991:1 bonus800 20001:1 split1600 2004 **3:1 bonus6400 2006 (proposed)1:1 bonus12800 ** Current value of holding at Rs 3,020 per share is Rs 1.93 crore.  The Rs 88 crore software company 10 years ago is a $2 billion entity today. It took Infosys 23 years to reach the first billion dollars in revenues, but the next billion dollars was achieved in 23 months.  The company has a stupendous track record of increasing shareholders wealth by way of bonus shares and distributing hefty dividends. After the IPO in February 1993, the company declared bonus in the ratio of 1:1 in 1994. In 1997 and 1999, too, the company gave bonus shares in the ration of 1:1 followed by stock split in the ratio of 1:1 in 2000.  Infosys came out with a liberal bonus issue in the ratio of 3:1 in 2004, and has proposed a bonus of 1:1 for 2006.  After giving moderate dividends till financial year 2001, Infosys began to propose liberal dividends. In FY2001, the company declared 200% dividend and stepped it up to 400% next year. It declared 540% dividend in 2003, and 2590% in 2004 including a special dividend of 2000%. For FY2006, the company has proposed a dividend of 900%.  Infosys has benefited immensely by the technology boom, and so has Wipro. If the shareholders of Infosys Technologies have reaped the gains, Wipro shareholders have also been rewarded with mind-boggling gains. The Rs 75,000 invested in Wipro in 1994 is currently valued at Rs 1.90 crore - a return of 25,000%!!