Bonus share issue: NBCC (India) Limited Board of Directors approved the issuance of 90 crore new equity shares as bonus shares to its shareholders, marking a notable event in the company's ongoing financial activities, on August 31.
October 31, 2024, is the estimated date by which such bonus shares would be credited/dispatched, within two months from the date of approval of the Board.
These bonus shares will be issued in the ratio of 1:2, meaning that shareholders will receive one new fully paid-up equity share of ₹1 for every two existing fully paid-up equity shares of the same value. The issuance will be financed through the company's free reserves, created out of profits, which amount to ₹1,959 crore as of March 31, 2024. To facilitate this bonus issue, ₹90 crore from these reserves will be utilized.
“The Board of Directors has recommended the issuance of Bonus Shares to the Shareholders of the Company in the ratio of 1:2 i.e., 1 (One) new fully paid-up Equity Share of ₹ 1/- each for every 2 (Two) existing fully paid-up Equity Share of ₹ 1/- each to the eligible members of the Company as on Record Date, subject to the approval of the Shareholders in the forthcoming Annual General Meeting,” NBCC India announced in an exchange filing.
The Company has a balance of ₹ 1,959 crore being reserves & surplus available for capitalization as per Audited Financial Statements on March 31, 2024.
The company's stock has seen remarkable growth this year, skyrocketing by over 251 per cent, rising from ₹52.76 to ₹186.35. Investors have flocked to this Navaratna stock, driven by a consistent stream of order wins. This strong performance has solidified the stock's reputation as a preferred choice for those aiming to capitalize on its growth potential.
NBCC's market capitalisation stands at ₹33,543.00 crore on the BSE as of September 1, 2024.
NBCC stock closed in the red, down 4.29 per cent, at ₹186.35, as per BSE, on August 30. NBCC stock hit a record high of ₹209.75 on August 28, 2024, and fell to a 52-week low of ₹51.00 on August 30, 2023, as per NSE.
Pre-bonus issued share capital: 180,00,00,000 shares ( ₹180,00,00,000)
Post-bonus issued share capital: 270,00,00,000 shares ( ₹270,00,00,000)
The company has set Monday, October 07, 2024, as the record date to determine the eligibility of shareholders entitled to receive these bonus shares. Following the bonus issue, the company's share capital will increase from 180 crore shares to 270 crore shares, with the total share capital rising correspondingly from ₹180 crore to ₹270 crore.
This decision by the NBCC Board is pending approval from the shareholders at the upcoming Annual General Meeting. The company has assured that the bonus shares will be credited or dispatched to eligible shareholders by October 31, 2024, ensuring compliance with regulatory requirements and timelines.
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