Tata Consultancy Services (TCS) shares will turn ex-bonus on Thursday. The largest Indian IT firm by sales had announced a 1:1 bonus for its shareholders on its 50th anniversary. The date set for bonus shares is June 2. This is the third time TCS is offering bonus since its listing in 2004.
Share prices of TCS have as a result halved for adjustment today to from Rs 3,514.10 at market closing on Wednesday to around Rs 1,750 today.
What is ex-bonus?
If you were to hold TCS shares before today, you would be eligible to get the bonus shares that the company will be issuing. You would have 1 extra stock per share that you held.
But from today, that is after the shares have gone "ex-bonus," if you were to buy any number of additional shares, you will not get be eligible to get the bonus that is going to be issued.
The IT giant had reported a 4.48 percent rise in its fourth quarter (January-March 2018) last month to Rs 6,904 crore from Rs 6,608 crore in the same quarter last year. On a quarter to quarter basis it had gained 5.71 percent in profit.