The Board of Directors of Blue Star Limited at their meeting held on April 7, 2000 declared an interim dividend of 45% for the financial year ended 31st March 2000. (FY 98-99 : 35%).
The interim dividend is payable on the reduced capital after implementation of reduction of the capital of the company, as per the scheme of arrangement between Blue Star Limited and Blue Star Infotech Limited. According to the scheme, the software business of Blue Star will deem to have been transferred w.e.f. 1st October 1998 to the new company, Blue Star Infotech Limited. Blue Star shareholders will receive one share of Blue Star Infotech Limited for every four Blue Star shares held by them. There will be an equal reduction in their Blue Star shareholding. The scheme has been approved by the High Court of Bombay and the necessary formalities are being completed in order to get the shares of Blue Star Infotech Limited listed in the Stock Exchange by 30th June, 2000.
While the audited financial results of Blue Star Limited are yet to be announced, the expectations are that the gross margins will be much higher than that of last year, despite only a small growth in sales.