Tech Mahindra Ltd. shares declined up to 4% on Monday, October 12, ahead of the company’s board meeting later this week, when it will be considering a bonus issue of shares along with its quarterly results. This will be the first time in 11 years that Tech Mahindra may issue bonus shares to its shareholders.
This will be the first instance of the company issuing bonus shares to its shareholders since March 2015, when it had issued one bonus shares in the 1:1 ratio.
Tech Mahindra had also proceeded with a sub-division of shares, where it had split one share of face value ₹10 into two shares, that have been carrying a face value of 5 each since March 2015.
In 2019, the IT services provider had announced a share buyback worth ₹1,950 crore at ₹950 per share. The same was conducted via the tender offer route.
The company pays its shareholders dividends regularly, with ₹36 being its highest on record, paid to shareholders in July this year.
Over the last three years, the company has paid dividends worth ₹168 apiece, including interim dividends of ₹15 in October 2025 and 2024 each and final dividends of ₹30 in 2025, ₹28 and ₹32 in 2024 and 2023, respectively.
At the end of the June quarter, 7.1 lakh small retail shareholders, or those having authorized share capital of up to 2 lakh, held 6.18% stake in Tech Mahindra, while Mutual Funds held 19.14%, LIC held 11.1% and foreign portfolio investors held 18.66% stake in the company, as per data available on the exchanges.
Promoters held 34.97% stake in the company, while public shareholders comprised 65.03% stake.
Shares of Tech Mahindra, after making an intraday low of ₹1,442.5 are trading 3.1% lower at ₹1,467.5. The stock is down 7% in the last one month and close to 10% on a year-to-date basis. The stock is among the top losers within the IT space on Monday.
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