Mastek plans stock split

MUMBAI: Mastek Limited has proposed a stock split in the ratio of two shares

for every one share, thus reducing the face value of the share from Rs 10 to Rs

5. This was proposed in a recently held meeting of the Board of Directors.

"The equity split should go a long way towards increasing liquidity

levels and this was done keeping in view the interest of our shareholders,"

said Mastek chairman and managing director Ashank Desai explaining the reason

behind the decision.

The Board has also recommended a 10 per cent final dividend, which together

with the interim dividend of 30 per cent takes the total dividend declared for

the year to 40 per cent. The dividend is payable on the increased share capital

after the bonus issue of 1:1. The bonus shares allotted in January 2000 are also

eligible for the full year’s dividend.

The Mastek Group reported a 61 per cent return on equity as compared to 30

per cent in the previous financial year. Net cash flow from operating activities

was Rs 53 crore which is 21 per cent of the revenues and free cash flows was Rs

33 crore, amounting to 33 per cent of the revenues. The borrowings of Mastek

Group reduced to Rs 19 crore as on June 30, 2000, from a level of Rs 27 crore as

on June 30, 1999.