Tech Mahindra announces 1:1 bonus share issue

Tech Mahindra has announced a 1:1 bonus issue, giving shareholders one additional share for every share they already own.

The Indian IT services company last announced a bonus issue in January 2015.

The company has not yet set the record date, which determines which shareholders qualify.

A bonus issue increases the number of shares but does not itself add value to an investor’s holding.

The share price usually adjusts downward when the stock begins trading without the bonus, reflecting the larger number of shares.

Tech Mahindra reported Q2FY27 revenue of ₹16,180 crore, up 15.6% year on year, and profit after tax of ₹1,586 crore, up 32.7%.

The company reported strong deal wins, including more than $1 billion in each of the last four quarters, and says it is confident about its business momentum.