Tech Mahindra shares tumbled 4% to ₹1,467.5 on Monday, after an intraday low of ₹1,442.5. The dip marks a 7% decline over the past month and a 10% drop YTD, making it one of the IT sector’s biggest losers.
Investors are bracing for the board meeting on Wednesday, where the company may announce a bonus issue – a first in 11 years. The last time Tech Mahindra issued bonus shares was in March 2015, when it offered a 1:1 ratio after a 1:2 split that reduced the face value from ₹10 to ₹5.
Shareholder structure reveals 7.1 lakh small retail holders commanding a 6.18% stake, while mutual funds hold 19.14%, LIC 11.1% and foreign portfolio investors 18.66%. Promoters own 34.97%, leaving 65.03% in public hands.
With Q2 results slated for release next week, market participants are keen to gauge whether the board’s decision on a bonus will translate into higher dividends or a revised earnings outlook. The company has historically paid ₹36 as its highest dividend in July, and its recent interim payouts of ₹15 have set the stage for potential adjustments.