NBCC (India) Limited Announces 1:2 Bonus Share Issuance

NBCC (India) Limited's Board of Directors has recommended issuing bonus shares in a 1:2 ratio, pending shareholder approval. The move is a reflection of the company's strong financial health and aims to enhance shareholder value. The record date for determining eligibility is October 07, 2024.

NBCC (India) Limited's Board of Directors has recommended issuing bonus shares to its shareholders in a 1:2 ratio. In simpler terms, one new fully paid-up Equity Share of Rs 1 each will be given for every two existing fully paid-up Equity Shares of Rs 1 each. The decision was made during a meeting held on Saturday and is pending shareholder approval at the forthcoming Annual General Meeting.

This decision underscores the company's robust financial health and commitment to its shareholders. "This decision reflects the Company's strong financial health and its commitment to rewarding its shareholders. The Board has also fixed Monday, October 07, 2024, as the record date to determine the eligibility of members to receive bonus shares," said the company.

Eligible shareholders, whose names are listed in the Register of Shareholders or the List of Beneficial Owners maintained by depositories as of August 31, 2024, will receive these bonus shares. The company's paid-up equity share capital will then increase from Rs. 180 crore to Rs. 270 crore. The newly allotted bonus shares will hold the same status as existing shares and will be credited directly to shareholders' demat accounts.

The company's reserves and surplus available for capitalization stand at Rs. 1,959 crore as per audited financial statements on March 31, 2024. "The decision to recommend a bonus issue is a testament to the robust performance and sound financial position of NBCC India Limited. The company has achieved the highest ever turnover, business development, and profit for the Financial Year 2023-2024. This initiative aims to enhance shareholder value and demonstrates our dedication to our investors. We believe this initiative will further strengthen the confidence of our shareholders and reflect our ongoing commitment to creating value," said K.P. Mahadevaswamy, CMD, NBCC.

NBCC (India) Limited last issued a bonus in 2017 in a similar 1:2 ratio. The company is a blue-chip Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs.

(With inputs from agencies.)