By Malvika Gurung
Investing.com -- Shares of the IT service management company Hinduja Global Solutions Ltd (NS:HGSL) tanked 20% and were locked in the lower circuit at Rs 2,855.5 apiece in early trade on Friday.
The stock plunge was a result of profit-booking by investors after the IT services provider announced an interim dividend of Rs 150/share and a 1:1 bonus share.
The stock had hit a record high of Rs 3,948 on Jan 4, 2022, after the company informed of considering another interim dividend and a proposal for the bonus issue of equity shares.
HGS announced its third interim dividend of Rs 150/share for FY22, fixing Jan 18 as the record date, while the payment will be made no later than Jan 27.
The company’s board has also approved the issue of new bonus shares in the ratio 1:1, which means for each share a holder owns in the company, he/she will be given another one. This is done to increase the liquidity of the stock, and reduce the stock price so that the shares are affordable.
In the past month, HGS has rallied 24%, and 209% in the past year.