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NBCC (India) Ltd. has approved a bonus share issuance of 1:2, granting one additional share for every two held, using INR 90 crore from its reserves. The record date is October 7, 2024, with approximately 90 crore bonus shares set to be issued. This decision reflects the company's strong performance, including record turnover and profit for FY 2023-2024. With a reserves balance of INR 1,959 crore, NBCC aims to reward shareholders and attract new investors. This move, the first since 2017, underscores NBCC's robust financial health and commitment to growth.
NBCC (India) Ltd., a state-owned enterprise, has announced the approval for issuing bonus shares in a 1:2 ratio to its eligible shareholders. This means that for every two shares owned, shareholders will receive one additional fully paid-up equity share valued at INR 1 each. The company plans to utilize INR 90 crore from its free reserves to fund this initiative, which is pending approval from shareholders at the upcoming Annual General Meeting (AGM). Advertisement
The record date is set for October 7, 2024, which will determine the eligible members entitled to receive the bonus shares. This calculation places the total number of bonus shares to be issued at approximately 90 crore. NBCC has a robust reserves and surplus balance of INR 1,959 crore, which supports this decision.
The decision comes after a successful financial year for the company. K P Mahadevaswamy, the Chairman and Managing Director of NBCC, emphasized the initiative's significance, highlighting that it reflects the company's strong performance and sound financial standing. The company recently reported its highest-ever turnover, business growth, and profit for the fiscal year 2023-2024, marking a period of substantial growth.
The issuance of bonus shares is not just a reward for existing shareholders but also aims to draw in potential investors, signaling the company's strong market position and commitment to growth. The last bonus issue from NBCC was in 2017, also in a 1:2 ratio, showing a consistency in the company's strategy to reward its shareholders.
NBCC is primarily involved in project management consultancy (PMC) and real estate sectors. With an impressive order book totaling over INR 81,300 crore, the company is focusing on various growth avenues such as redevelopment projects, land monetization for public sector undertakings, real estate development, international expansion, and project management consultancy. These strategic efforts position NBCC not only to grow its business but also to contribute to the broader goal of a "Viksit Bharat," or developed India.
Analysts believe that the bonus share issuance will boost investor confidence in NBCC as it aims to improve liquidity and make the shares more accessible to a wider range of investors. Such initiatives are crucial for maintaining a dynamic and responsive relationship with shareholders, especially in times of fluctuating market conditions.
Overall, NBCC's move towards issuing bonus shares illustrates a commitment to fostering shareholder relations while also reinforcing its role in India's infrastructure development. As the company progresses, stakeholders will be keen to see how this decision translates into sustained growth and value creation in the coming years.
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