By NSB.News
The Board of Directors of NBCC (India) Limited, in a meeting held on August 31, 2024, has recommended the issuance of bonus shares. The proposed ratio is 1:2, meaning shareholders will receive 1 new fully paid-up equity share of ₹1 each for every 2 existing fully paid-up equity shares of ₹1 each. This recommendation is subject to approval at the forthcoming Annual General Meeting (AGM). The Record Date for determining eligibility for these bonus shares is set for October 7, 2024. This move underscores the company’s strong financial health and its commitment to rewarding shareholders.
Details of Bonus Share Allocation
Eligible shareholders, whose names are recorded in the Register of Shareholders or the List of Beneficial Owners as of August 31, 2024, will receive the bonus shares. As a result, the company’s paid-up equity share capital will increase from ₹180 crore to ₹270 crore. The new shares will have equal status with existing shares and will be credited directly to shareholders’ demat accounts.
Financial Reserves and Surplus
As per the audited financial statements for the year ending March 31, 2024, the company has reserves and surplus amounting to ₹1,959 crore available for capitalization.
Statement from CMD Shri K.P. Mahadevaswamy
Shri K.P. Mahadevaswamy, CMD of NBCC, remarked, “The decision to recommend a bonus issue highlights NBCC’s robust performance and solid financial position. With the highest turnover, business development, and profit ever recorded for the financial year 2023-2024, this initiative is designed to enhance shareholder value and reinforce our commitment to investors. We believe this will further boost shareholder confidence and demonstrate our dedication to value creation.”
Historical Bonus Share Issuance
The last bonus issue by NBCC (India) was announced in 2017, also in the ratio of 1:2.
Company’s Strategic Focus and Future Outlook
NBCC, with an order book exceeding ₹81,300 crore, is strategically focused on redevelopment, PSU land monetization, real estate development, overseas expansion, and PMC works. The company is well-positioned to contribute to the vision of a “Vikshit Bharat” (Developed India).