The company said in a notice to the Bombay Stock Exchange (BSE) its board of directors would meet on November 29 to consider a reduction in the par value of its shares from the current Rs 10 per share. HCL Technologies which is raising money through an initial public offering has set Rs 4 as the face value of its share. Infosys now joins a growing list of Indian firms, including Wipro Ltd and Zee Telefilms, that have either implemented or announced stock splits to make their soaring shares more liquid and affordable.

Infosys leads the sector with a market capitalisation of more than Rs 30,200 crore ($6.95 billion). It was also India's first company to be listed on a US Exchange when its American Depository Receipts (ADRs) werelisted on the technology-laced Nasdaq in March.

The firm's shares touched their all-time high of Rs 9,750 on the BSE in Thursday morning trade before falling back to Rs 9,480 by early afternoon, still up by nearly four per cent from the previous close on volume of 175,000 shares. Infosys, which has the second highest weighting at 12 per cent in the top 30-share BSE Sensex, was the main contributor to the index's 1.00 per cent gain to 4,733.73.

Analysts cheered the widely expected move, saying though it would not change the stock's fundamentals, it would impart liquidity. "The move is very positive. It was expected, though," said an analyst with SBI Capital Markets Ltd, who felt the face value of the shares may be reduced to two rupees per share.

"It will stoke greater retail participation. But I do not think it will lead to gains in the share price," said an analyst. Infosys' shares have risen almost five and a half times from their December 31, 1998 level of Rs 1,479.25. The rises have been morepronounced since its ADRs, representing half a local share, were listed in March at an offer price of $34. The ADR premiums have led the domestic price movements.