Infosys mulls bonus issue

Infosys Technologies has announced that it would consider recommending issue of bonus shares on April 14, 2006, when it would announce its fourth quarter results for 2005-06.

There has been buzz in the market that Infosys will reward its shareholders as it completes 25 years of operations.

If a bonus issue is made, it will be the ninth time Infosys will be doling out bonus share.

In 2004, the company had announced a 3:1 issue. An analyst said: "Liquidity is not the reason, but more of a sentiment which is driving the stock upwards. In global markets, bonus issues are not a trend anymore." Prior to the 2004 issue, all the previous bonus issues were 1:1, starting from 1986.

Infosys shares jumped to a new 52-week high in early trading on Friday after the company announced it would consider issuing bonus shares. Shares rose more than 9 per cent to touch a new year high of Rs 3,400. The stock closed on Friday at Rs 3167, up 1.68 per cent from its previous close on Thursday.

Infosys is expected to cross the $2 billion mark during the current fiscal. While the first billion took almost 25 years, the second billion is being crossed in less than two years.