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Business News/ Companies / News/  Majesco announces 974 dividend per share amounting to 2,788 crore
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Majesco announces ₹974 dividend per share amounting to ₹2,788 crore

In July, Majesco had announced its intention to sell its US arm to private equity Thoma Bravo LP, for a consideration of $594 million. It had said proceeds from the sale of its US-listed entity will be distributed among shareholders

On Tuesday, Majesco shares traded at ₹986 apiece on the BSE, up 1.3% from its previous close while the Sensex was down 0.6% at 45982.56 points.Premium
On Tuesday, Majesco shares traded at 986 apiece on the BSE, up 1.3% from its previous close while the Sensex was down 0.6% at 45982.56 points.

MUMBAI: Majesco Ltd on Tuesday said its board has approved an interim dividend of 974 a share for fiscal 2020-21. The payout for this translates to a total of 2,788.40 crore on a base of 28.577 million shares. The record date is 25 December.

At 1130am, the Majesco stock traded at 986 apiece on the BSE, up 1.3% from its previous close while the Sensex was down 0.6% at 45982.56 points.

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In July, the company had announced its intention to sell its US arm to private equity Thoma Bravo, LP, for a consideration of $594 million.

It had said it intends to distribute the entire proceeds from the sale of its stake in the US-listed entity to shareholders in a tax efficient manner as expeditiously as possible. The distribution to shareholders is anticipated to be in the form of dividend or buyback, the company had added.

In October, the company had announced a buyback of 25% of its equity or 74.70 million shares at 845 apiece amounting to 770 crore.

The stock has doubled since the announcement of selling of the US arm and analysts expect some more upside, given the payout potential from cash holdings and monetisation of property. Since its lows of March, the scrip has surged over 478% to 986 a share. So far this year, it has gained 158%.

Majesco owns a seven-storey office building spread across 1,20,000 sq ft in Mahape, Navi Mumbai, wherein it collects rent from Majesco US. It also holds adjoining land where construction is underway, expected to conclude in March (45k Sqft build-up area).

The company plans to sell this asset and also intends to pay out the proceeds to shareholders and delist the India subsidiary. The entire process is likely to take another six months post deal closure.

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Published: 15 Dec 2020, 12:52 PM IST
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