The Hindu : Business : Cognizant announces two-for-one stock split

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Wednesday, Apr 14, 2004

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Business

Cognizant announces two-for-one stock split

By Our Special Correspondent

CHENNAI, APRIL 13. The board of directors of the Nasdaq-listed Cognizant Technology Solutions Corporation, a leading provider of IT services, today approved a two-for-one stock split on its capital stock in the form of a stock dividend.

This is, however, subject to an approval from stockholders for an increase in the company's capital stock authorisation at its upcoming annual meeting scheduled for May 26.

Subject to such approval, stockholders of record as of May 27, 2004 will be entitled to one additional share of common stock for each share held on the record date.

The stock dividend distribution is expected to occur on or about June 17. It is anticipated that the company's class A common stock will begin trading on a post-split basis the business day following the distribution date.

"The stock split recapitalisation reflects the board's confidence in the company's future prospects," said Lakshmi Narayanan, President and Chief Executive Officer, in a release. "This stock split is expected to result in a trading volume and trading range for our stock likely to appeal to a broader spectrum of investors," the release quoted him further saying.

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