State-owned NBCC (India) Ltd. on Saturday (August 31) through an exchange filing announced that the board of directors of the company has approved the issuance of bonus shares in the ratio of 1:2.
This in simple terms means that the shareholders of the company will receive one new fully paid-up equity share of Rs 1 each for every two existing shares they hold.
As per the regulatory filing, the company added that the proposal is subject to approval at the upcoming Annual General Meeting (AGM) of the company.
Utilisation of Free Reserves
The company will utilise Rs 90 crore from its free reserves to implement this bonus issue.
Prior to the bonus issue, the company had 180 crore shares, amounting to Rs 180 crore in share capital. | Representative Image
"The bonus equity shares will be issued out of free reserves created out of profits and available as per Audited Financial Statements on March 31, 2024," said the company in the exchange filing.
Impact on Share Capital
The bonus issue will increase NBCC's share capital. Prior to the bonus issue, the company had 180 crore shares, amounting to Rs 180 crore in share capital. Post-issue, the number of shares will rise to 270 crore, with the share capital increasing to Rs 270 crore.
The Board of Directors has fixed October 7, 2024, as the record date to determine the eligibility of shareholders for the bonus shares.
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"The Company has a balance of Rs. 1,959 crore being reserves & surplus available for capitalization as per Audited Financial Statements on March 31, 2024," added the company in the regulatory filing.
Share performances of the company
The shares of the company on Friday ended the week at Rs 186.60 per share, down by Rs 4.22 per cent.
