HCL Technologies announces 1:1 bonus issue

HCL Technologies Ltd has announced that the Board of Directors of the Company at its meeting held on December 14, 2006 has recommended 1:1 bonus issue. The Company shall, subject to its shareholders approval, issue one additional equity share for every share held by the shareholders on the record date, which would be fixed by the Board. The paid-up share capital of the Company is Rs 64.69 crores (comprising 323,442,350 equity share of Face Value of Rs 2/- each) and the Company has Reserve & Surplus of Rs 2511.18 crores as on June 30, 2006.

The Company was listed in January 2000 and had earlier undertaken 1-for-1 stock split in December 2000.

Mr Shiv Nadar, Chairman & CEO of the Company "HCL believes in investor friendly policies. For the last 15 quarters we have been following a high dividend policy. The current bonus issue is a reaffirmation of the policy of rewarding our shareholders, and this is expected to enhance liquidity of the stock and broaden our investor base."

Further the Company has informed that, the Board has recommended the following proposals for the approval of the shareholders by way of postal ballot:

a. Issue of bonus shares on the company’s equity shares in the ratio of 1:1 i.e., one additional equity share for every one equity share held by the members on the record date to be fixed by the Board, by way of capitalization of amount standing to the credit of Securities Premium Account.

b. Increase in authorised share capital from Rs 125.45 crores to Rs 150.00 crores and consequential alteration in the Memorandum & Articles of Association of the Company.

Source : Equity Bulls

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