The board of software exporter Majesco has approved a provisional dividend of ₹ 974 per share, in what could be one of the highest dividend payments ever in the history of Indian stock market. Shareholders will collectively receive ₹ 2,788 crore as dividend payment.
“The board at its meeting held on December 15, 2020 approved payment of an interim dividend at the rate of 19,480 percent or ₹ 974 per share of the face value of ₹ 5 for the accounting year 2020-21,” the company said in a recording to the exchanges. In July, private equity firm Thoma Bravo acquired Majesco’s U.S. arm for $ 594 million. Majesco then said the proceeds from the sale will be distributed to shareholders, as 99 percent of the proceeds were from the U.S. subsidiary. Majesco owned 74 percent of this unit.
Majesco started as the US subsidiary of Mastek and in 2014 was separated as a separate entity. Key shareholders in Majesco Limited include Ashank Desai, Sudhakar Ram and Ketan Mehta, who were part of the founding team of Mastek, a software services provider in Mumbai. According to equity stock data, promoters own 38.23 percent in Majesco Limited, a provider of cloud insurance software, and public shareholders, which include financial institutions, account for 61.77 percent of the total capital. The record date for the dividend is December 25th and the ex-dividend date is December 23rd. The earliest dividend payment, according to the company, will be on December 30th.
Additionally, the Majesco board approved a repurchase of up to 7.47 million shares, representing 25 percent of the company’s total paid-in share capital, as of September 30, 2020, at ₹ 845 shares, for an amount not exceeding ₹ 631.26 crores. The company’s shares closed at ₹ 982 after hitting a 5 percent upper circuit during intra-day trading. The shares traded at ₹ 401 when the US deal was announced in July.