KPIT Cummins board to mull bonus issue

The board of directors of KPIT Cummins Infosystems Ltd will meet here on November 8 to consider e issue of bonus shares and stock split. The company is contemplating a split of its stock from a face value of Rs 5 to a face value of Rs 2.

As a combined result of the two decisions, a shareholder will get 5 shares of Rs 2 in the company for every share of Rs 5 face value he currently holds, according to a press release said.

At present, the company's share capital is approximately 5 per cent of its reserves and surplus. It currently has 14,892,797 shares outstanding. Following the bonus issue and the stock split, the number of shares will become 74,463,985.

KPIT Cummins recorded a net profit of Rs 12.38 crore for the quarter ended September 2006, 61.98 per cent higher, compared with the same quarter last year. Total revenues for the quarter grew 46.78 per cent to Rs 114 crore.

Ravi Pandit, chairman and group CEO, said ?Considering the potential for growth in the immediate future, we believe this is an appropriate time to issue bonus shares.

The stock split to Rs 2 per share will also bring the denomination of our shares in line with that of the leading companies in India.

Simultaneous, issue of bonus and stock split will help us increase the liquidity of our stock and facilitate greater participation of the investing community.