Majesco declares dividend: Anil Singhvi’s Super Exclusive interview of Majesco MD and Group CFO Farid Kazani

Zee Business Managing Editor Anil Singhvi on Tuesday interviewed Majesco MD and Group CFO Farid Kazani. The Majesco MD and Group CFO said that announcing dividend of Rs 974 is an extremely proud moment for the company. Also, he said that this is a historic moment for the company and it is a big milestone. The business that the company sold and the amount generated via proceeds of that sale is completely been returned to the shareholders of the company in the form of Dividend. Company did buyback a while ago worth Rs 164 cr, shareholders who submitted their shares will get their money. Approximately Rs 2788 would be given by the way of Dividend to shareholders. After distributing dividends, company will be left with Rs 103 cr which will also be distributed among shareholders after regulatory and board approvals.

मजेस्को देगी बड़ा डिविडेंड...

मजेस्को के MD & ग्रुप CFO का SUPER EXCLUSIVE INTERVIEW

आज का सबसे बड़ा इंटरव्यू... FIRST ON ZEE BUSINESS

MD & ग्रुप CFO फरीद कजानी ने कहा- कंपनी के पास अब कोई कारोबार नहीं..#Majesco #Dividend @ZeeBusiness @Majesco_Incpic.twitter.com/4GZoubk48x

— Anil Singhvi Zee Business (@AnilSinghvi_) December 15, 2020

Kazani said that the value of the Real Estate of the company is also good, however since the real estate market is not strong right now, the company might take some time to sell till the market starts improving. Management will watch real estate space closely and will monetize the assets when the time is right to get decent valuation. Management will ensure that the shareholders get the best return. Patience will get tested during tough times like these. Ideally management should be able to dispose of the real estate in next 9 to 12 months.

Management of the Company has no intention to divert the funds to any other businesses. They have no other area of interest where the funds could be used.

Kazani said after demerging the arm from Mastek, the company created strong Goodwill and Brand name in past 5 years. The entire business has been sold to private equity firm.  Management created good value for the company over past few years and sold it at premium valuations is an historic moment for the Indian IT Industry. This is the first enterprise software company which created good value and is been sold in US market successfully.

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There were various other methods and ways to distribute cash among shareholders. However, it would have taken 1 or 1.5 years but the tax payment would have been less for the shareholders. Each and every shareholder is looking to optimize the tax in their own way. Company has given then 3 options to the shareholders. These 3 options will help the shareholders to focus which is the best option that suits them