Software exporter Majesco’s board of directors has approved an interim dividend of £ 974 per share, which could be one of the highest dividend payouts in the history of the Indian stock market. The shareholders will receive a total of 2,788 crore as a dividend distribution.
“The Board of Directors, at its meeting on December 15, 2020, approved the payment of an interim dividend of 19,480 percent, or £ 974 per share of face value of £ 5 each for fiscal year 2020-21.” The company said in a filing to the stock exchanges . In July, the private equity firm Thoma Bravo acquired the US arm of Majesco for $ 594 million. Majesco had announced at the time that the proceeds from the sale would be distributed to shareholders, as 99 percent of the proceeds came from the US subsidiary. Majesco had a 74 percent stake in this unit.
Majesco started out as a US subsidiary of Mastek and was spun off as a separate entity in 2014. Major shareholders of Majesco Limited include Ashank Desai, Sudhakar Ram and Ketan Mehta, who were part of the founding team of Mumbai-based software service provider Mastek. According to the shareholders, the promoters own 38.23 percent of Majesco Limited, a provider of cloud-based insurance software, and public shareholders, which include financial institutions, account for 61.77 percent of total equity. The cut-off date for the dividend is December 25th and the ex-dividend day is December 23rd. The earliest dividend payment will be made on December 30th, according to the company.
In addition, Majesco’s board of directors has approved a buyback of up to 7.47 million shares representing 25 percent of the company’s total paid-up equity as of September 30, 2020 at a price of £ 845 per share at £ 631.26 crore. The company’s shares closed at £ 982 after hitting an upper circle of 5 percent during intraday trading. The shares were trading at £ 401 when the US deal was announced in July.