Infosys pays 870% dividend

bengaluru — Global software major Infosys Ltd on Friday rewarded its investors with a record 870 per cent 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 per cent), including ₹20.50 (410 per cent) final dividend and ₹13 (260 per cent) interim dividend and a special dividend of ₹10 per share (200 per cent).

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 cent) per share, including ₹14.75 (295 per cent) final and ₹11 (220 per cent) interim.

As part of its capital allocation policy, the board has agreed to pay a whopping ₹130 billion ($2 billion) to the shareholders through the special dividend amounting to ₹26 billion ($400 million).

“The board has also identified ₹104 billion ($1.6 billion) to be paid out to investors for fiscal 2018-19 in a manner it will decide during this year,” the company said.

The policy envisages returning up to 70 per cent 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.