Persistent Systems board approves 2-for-1 stock split, declares Rs 32/share interim dividend
Persistent Systems on Saturday said that its has board approved splitting the value of shares in the ratio of 2 for 1.
The existing one equity share having a face value of Rs 10 each, will be split into two equity shares having a face value of Rs 5 each, the company said in an exchange filing.
This is the first time the company will be splitting the shares since it got listed.
A stock split will enhance the liquidity in the company’s shares and make it more affordable, particularly for retail investors.
Stock splits, particularly in highly-priced stocks, enhance the liquidity of the company's equity shares and encourage the participation of retail investors by making equity shares of the company more affordable. The valuation of the stock doesn’t change and the balance sheet doesn't get affected in this process.
Over the last year, shares of the IT services provider have rallied over 83%, while in three years, its value has risen by nearly four times. The stock has outperformed the Nifty IT index over the last year, which had gained over 24%.
Further, the board has also recommended an interim dividend payout of Rs 32 a share for the current financial year.
The record date to determine the eligible shareholders for the dividend payout is set as January 30.
The software services provider also released its earnings for the quarter ended December 2023.
The consolidated profit rose 20.3% on year and 9% sequentially to Rs 286 crore. Revenue from operations grew by over 15% on year and about 4% sequentially to Rs 2,498 crore.
