NBCC (India) Ltd, a state-owned enterprise, has announced the issuance of bonus shares in the ratio of 1:2. This means that eligible shareholders will receive one fully paid-up equity share of Rs 1 each for every two existing shares they hold.
Board Approval and Record Date
The decision of NBCC bonus shares approval was made during a recent board meeting, where the directors approved the issuance of bonus shares and set the record date for determining eligible shareholders. According to a regulatory filing, the Board of Directors has recommended this issuance, subject to the approval of shareholders in the upcoming Annual General Meeting (AGM).
The record date has been fixed for October 7, 2024. On this date, the company will assess which members are eligible to receive the bonus shares.
Utilization of Free Reserve
NBCC plans to utilize Rs 90 crore from its free reserve to fund the issuance of these bonus shares. This allocation ensures that the company can maintain its capital structure while rewarding its shareholders.
NBCC is primarily involved in Project Management Consultancy (PMC) and real estate. The company has a strong presence in the construction and infrastructure sectors, offering a range of services from project management to real estate development.
NBCC 1:2 Bonus Shares
The issuance of bonus shares is contingent upon approval from NBCC’s shareholders during the forthcoming AGM. Once approved, the bonus shares will be distributed to eligible shareholders as per the record date, enhancing the value of their investments.
NBCC approved 1:2 bonus shares, utilizing Rs 90 crore from free reserve. Record date set for October 7, 2024, subject to shareholder approval. This strategic move by NBCC to issue bonus shares is aimed at rewarding its shareholders while utilizing its free reserves effectively. The company continues to strengthen its position in the project management and real estate sectors, with this bonus share issuance marking another step in its growth journey.
