Majesco hits record high as Co's board approves interim dividend of Rs 974

Post monetisation of real estate, the Company will decide the best method for distribution of sale proceeds to shareholders, the company said.

Shares of Majesco hit a fresh record high of Rs 1,019, up 5 per cent on the BSE in early morning trade on Tuesday after the company said its board has approved payment of interim dividend at the rate of 19480 per cent i.e. Rs 974 per equity share of face value of Rs 5 each for the financial year 2020-21.

The company has fixed Friday, December 25, 2020, as the record date for ascertaining the eligibility of shareholders for payment of interim dividend. This interim dividend payout translates to an amount of Rs 2,788.4 crore on a shareholder base of 28.577 million shares.

The balance cash reserves estimated at Rs 103 crore will be distributed subject to board and regulatory approvals, the company said in a BSE filing.

The company already announced a buyback of 7.47 million shares for Rs 845 per share amounting to around Rs 631 crore (excluding transaction cost), which was closed on Friday, December 11, 2020.

As regards future plans on monetisation of real estate, the management said this could take longer i.e. over a year and depending on real estate market conditions. Post monetisation of real estate, the company will decide the best method for distribution of sale proceeds to shareholders, it said.

In July this year, Majesco, a global leader of cloud insurance software solutions for insurance business transformation, had signed a definitive agreement to be acquired by Thoma Bravo, L.P., a leading private equity firm focused on the software and technology-enabled services sectors, in a transaction valuing the company at $594 million. Majesco India holds a 74.07 per cent stake in the US entity, Majesco US.

By 10:43 am, the stock had pared its early morning gain and was trading 2 per cent higher at Rs 994 on the BSE, as compared to a 0.77 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over four-fold with a combined 4.5 million equity shares were changing hands on the NSE and BSE.