Insurance technology firm Majesco on Tuesday said that its board has approved an interim dividend of Rs 974 per equity share for the financial year 2020-2021. The company has fixed December 25 as the record date for the dividend.

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In an exchange filing, the company said, “We wish to inform that the Board of Directors of Majesco Limited at its meeting held today i.e. December 15, 2020, has approved payment of interim dividend at the rate of 19,480% i.e. Rs 974/- per equity share of face value of Rs 5/- each for the financial year 2020-21.”

This interim dividend payout translates to an amount of Rs 2,788.4 crore on a shareholder base of 28.577 million shares. The balance cash reserves estimated at Rs 103 crore will be distributed subject to board and regulatory approvals, it added.

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The stock price of the company reacted positively to the development as it gained as much as 4.66 percent to hit a 52-week high of Rs 1,019.00 apiece on the BSE. The shares of Majesco has rallied more than 180 percent in the last six months. The stock price was boosted on the back of several announcements by the company.

As per its future plans, the company also said the monetisation of real estate could take longer i.e. over a year and depending on real estate market conditions. However, post monetisation of real estate, the company will decide best method for distribution of sale proceeds to shareholders.

In October this year, Majesco had announced a Rs 630 crore share buyback, around 25 percent of the shares floating in the market at a price of Rs 845.

Earlier, in July, the company decided to sell its US subsidiary to another company in Delaware. Majesco received a consideration of over Rs 3,000 crore from the stake sale in the second quarter.

As a first step distribution of balance cash of Rs 103 crore to the shareholder base of 28.577 million will be carried out as expeditiously as possible subject to board and regulatory approvals.

At 11:25 am, the shares of Majesco traded 1.19 percent higher at Rs 985.15 apiece on the BSE as compared to a 0.65 percent loss in the benchmark Sensex.

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(Edited by : Ajay Vaishnav)