Infosys ADS up 3.39% on dividend plan

The American depositary shares (ADS) of Infosys Technologies surged 3.39 per cent on Tuesday to close at $86.85 on the Nasdaq.

The Infosys ADS opened at $85.50 and jumped up to an intra-day high of $89. Encouraged by the liberal stock dividend on ADS announced by the company on Tuesday, volumes at the Infy counter on the Nasdaq moved up from 5,49,019 on April 12 to 5,98,515 on April 13.

On Tuesday the company had recommended a stock dividend in the ratio of one ADS for every one held. Following this, the ratio for converting ADS into equity shares is at one equity share for one ADS. The dividend proposal will have to be approved by the shareholders' at the company's annual general meeting to be held on June 12, 2004.

Meanwhile, the Infosys board has fixed July 2, 2004, as the record date for the ADS bonus issue. The bonus ADS will be credited on July 6, 2004.