NBCC Allots 90 Cr Bonus Shares, announces 1:2 Bonus share

State-owned NBCC (India) Ltd shares gained 0.82% and slipped 3.30% in the past week. Last trading price of NBCC (India) shares on BSE is Rs 116.20 apiece.

The company via its BSE filing dated October 9, 2024, informed about the allotment of 90 crore bonus shares. The PSU also bagged fresh work orders worth Rs 50 crore. Earlier, the multi-bagger PSU traded ex-bonus on October 7, 2024, in the ratio of 1:2.

The BSE filing of NBCC dated October 9 stated, "This is about captioned subject and earlier intimations dated August 27/ 2024 and August 31, 2024, and according to Regulation 30 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations/ 2015/ ("SEBI LODR Regulations"), we wish to inform that the Bonus Issue Committee of the Board of Directors of the Company at its meeting held today i.e./ October 9/ 2024, has allotted 90,00,00,000 (Ninety Crore) fully paid-up Bonus Equity Shares of the Face Value of Re 1/- (Rupee One only) each in the ratio 1:2 i.e., One (1) new EquitY Bonus Share of Re 1/- each fully paid-up for every Two (2) existing Equity Shares of Re 1/- each fully paid- UP, held by the shareholders of the Company as on the record date i.e. Monday, October 07, 2024."

 The 52-week high price of NBCC (India) shares on BSE is Rs 139.90 per share (as of 28/08/2024) and the 52-week low price is Rs 38.73 per share (as of 10/10/2023), respectively. NBCC (India) shares surged 27% in the last 6 months, gained 449% in the last 2 years, and rallied 418% in the last 5 years.

The company decides via the record date who will become eligible to receive bonus shares. The firms' bookkeepers cross-check the records on the record date to recognize stockholders.

When a firm announces the bonus share issue, it also declares an ex-date. The ex-date is the last day to buy the company's shares to become eligible for the bonus issue. If you join the firm post the ex-date, you will not be eligible for bonus shares. T+2 rolling settlement has been used in India that implies the ex-date is two days before the record date.