The NBCC board approves a 1:2 bonus issue, NBCC (India) Limited has announced that its board of directors has approved a 1:2 bonus issue. This means that for every two existing equity shares, shareholders will receive one new fully paid-up equity share.
Key Details of the Bonus Issue
- Ratio: 1:2 (one new share for every two existing shares)
- Record Date: The record date to determine eligibility for the bonus shares will be Monday, October 7, 2024.
- Source of Funding: The bonus shares will be issued out of the company’s free reserves created from profits.
- Subject to Shareholder Approval: The bonus issue is subject to the approval of shareholders in the upcoming annual general meeting.
Impact of the Bonus Issue
The bonus issue is expected to have several positive impacts on NBCC (India) Limited:
- Enhanced Liquidity: The increased number of shares in circulation can improve liquidity in the stock.
- Improved Affordability: The lower share price resulting from the bonus issue can make the stock more affordable for retail investors.
- Positive Perception: The bonus issue can be seen as a positive signal from the company, indicating its financial health and confidence in its future prospects.
- No Dilution of Ownership: The bonus issue does not dilute the ownership of existing shareholders.
About NBCC (India) Limited
NBCC (India) Limited is a Navratna company under the Ministry of Housing and Urban Affairs, Government of India. It is a leading construction and project management company engaged in various sectors, including real estate development, engineering, procurement, and construction (EPC), and project management consultancy.
Note: This information is based on publicly available sources as of August 31, 2024. It is always advisable to consult with a financial advisor or refer to official company announcements for the most accurate and up-to-date information.
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