NBCC shares rises over 6% after PSU trades ex-bonus

New Delhi: NBCC Ltd., the state-run construction company, is trading with a gain of over 4% on Monday. The stock is trading ex-bonus in today's trading session.

On August 31, NBCC announced a bonus issue of 1:2, which means shareholders were eligible to receive one bonus share for every two shares held as of the record date.

Earlier in September, NBCC had signed an MoU with cash-strapped MTNL Ltd. to collaborate on developing a positive land parcel of MTNL, measuring nearly 13.88 acres in New Delhi. The project is said to be valued at Rs 1,600 crore.

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The board of the company had approved the issuance of bonus shares in a 1:2 ratio, meaning shareholders will receive one new fully paid-up equity share of Re 1 for every two existing fully paid-up shares held as of the record date, according to the exchange filing made.

A total of 90 crore bonus equity shares will be issued from free reserves generated from profits, as reported in the audited financial statements for the year ending March 31, 2024.

NBCC had fixed October 7 as the record date for the bonus issue. This means that if you purchased shares of NBCC today, you would not be eligible for availing the bonus shares.

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As of that date, NBCC India reported reserves and a surplus of Rs 1,959 crore available for capitalization. The bonus shares are expected to be credited within two months of the board's approval, with a target date of October 31, 2024, according to a filing with the BSE.

This is the first such proposal the company has considered after 2017, in which the company declared a 1:2 bonus issue. On September 30, NBCC announced that it had won an order worth nearly Rs 101 crore from the National Highways Authority of India (NHAI).

The scrip rose as much as 6.33% to Rs 119.80 apiece. It gave up gains to trade 3.80% higher at Rs 116.95 apiece, as of 09:37 a.m. This compares to a 0.32% advance in the NSE Nifty 50 Index.

 

 

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