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The BigBloc Construction's board approved a 1:1 bonus share issue in a July 19 meeting, granting one bonus equity share for every existing share, pending shareholder approval at the August 29 AGM. The move, utilising INR 28.31 crore from free reserves, aims to reward shareholders, enhance liquidity, and expand the shareholder base, increasing paid-up share capital to INR 28.31 crore. Additionally, the board declared a final 20% dividend (40 paise per share), with the Promoter Group shareholders waiving their dividend. The shares rose 2.08% to INR 271.75 on the BSE, peaking at INR 284.90.
In the meeting held on 19 July 2024, the Board of Directors of BigBloc Construction recommended issuing bonus equity shares to its shareholders. The proposed bonus shares will be distributed in the ratio of 1:1, meaning that for every existing equity share held, shareholders will receive one additional bonus share. This proposal is subject to shareholder approval at the forthcoming Annual General Meeting (AGM) scheduled for August 29. Advertisement
The company's decision to issue bonus shares aims to reward its existing shareholders, enhance market liquidity, and expand the shareholder base. For this purpose, BigBloc Construction will utilise INR 28.31 crore from its free reserves. Consequently, the company's paid-up share capital will also increase to INR 28.31 crore following the bonus issuance.
BigBloc Construction, recognised as one of India's largest manufacturers of Aerated Autoclaved Concrete (AAC) blocks, bricks, and panels, made this announcement through an official filing. The news had an immediate positive impact on the company's stock, which surged by 7% during the day, reaching INR 284.90 per share on the Bombay Stock Exchange (BSE). Later, the shares were trading 2.08% higher at INR 271.75 apiece.
In addition to the bonus share issue, the board approved a final dividend declaration of 20%, translating to 40 paise per equity share. Notably, the Promoter Group shareholders, who hold 60.18% of the company's equity, have chosen to waive their entitlement to this dividend.
BigBloc Construction's strategic decisions reflect its commitment to enhancing shareholder value and market presence. The use of substantial free reserves for the bonus issue underscores the company's strong financial health and its confidence in future growth. Moreover, by waiving their dividend rights, the Promoter Group shareholders are demonstrating their support for reinvesting in the company, which could be viewed positively by the market.
Overall, these measures signal BigBloc Construction's proactive approach to fostering investor confidence and supporting long-term value creation. As the AGM approaches, the focus will be on shareholder reactions and the potential approval of these significant proposals.
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