Infosys shares fall nearly 3 per cent ahead of bonus issue

Infosys shares tumbled nearly 3 per cent on Tuesday as the stock price factored in the issuance of bonus shares on Wednesday to the existing investors.

Traders said that profit-booking pulled down the scrip as the IT major went ex-bonus.

Stocks of Infosys fell by 2.72 per cent to Rs 2,116 on the Bombay Stock Exchange (BSE) on Tuesday, while at the National Stock Exchange (NSE), it was down over 2 per cent to Rs 2,115.

The bonus issue was announced in October, when Infosys reported its second quarter earnings. It had recommended a bonus issue of one equity share for every share held.

The issuing company fixes a particular date, which is termed as record date, when the investor must own shares in order to be eligible to participate in events like receiving dividend, bonus shares.

Infosys had informed domestic bourses in November that the company had fixed record date as December 3, 2014 for the purpose of allotment of bonus shares/stock dividend.

Bonus shares are free shares given to the existing shareholders of a company.