The board of directors of Cognizant Technology Solutions Corporation, a leading provider of information technology services, has declared a two-for-one stock split on its capital stock in the form of a stock dividend.
"The stock split recapitalisation reflects the board's confidence in the company's future prospects," a company press release said, quoting its president and chief executive officer Lakshmi Narayanan.
"This stock split is expected to result in trading volume and trading range for our stock is likely to appeal to a broader spectrum of investors," he said.
The stock split was subject to stockholder approval of 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, this year, would be entitled to one additional share of common stock for each share-held-on the record date.
The stock dividend distribution was expected to occur on or about June 17 this year and it was anticipated that the company's class-A common stock would begin trading on a post-split basis, the release said.
Cognizant provides applications management, development, integration, infrastructure management, business process outsourcing and change management through its onsite and off-shore outsourcing model.
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