NBCC India Announces Bonus Shares for Shareholders
The Board of Directors of NBCC (India) Limited has recommended issuing bonus shares to its shareholders in a 1:2 ratio. This means that for every two existing shares, shareholders will receive one new share.
The decision was made during a meeting held on Saturday and is subject to approval at the upcoming Annual General Meeting. The company has set October 7, 2024, as the record date to determine eligible shareholders.
Eligible shareholders, whose names appeared in the Register of Shareholders or the List of Beneficial Owners as of August 31, 2024, will receive the bonus shares. This will increase the company’s paid-up equity share capital from Rs. 180 crore to Rs. 270 crore.
The company has a reserve of Rs. 1,959 crore available for capitalization as per the audited financial statements on March 31, 2024. The newly allotted bonus shares will hold equal status with the existing shares and will be directly credited to the shareholders’ demat accounts.
NBCC (India) Limited, a blue-chip Government of India Navratna Enterprise under the Ministry of Housing and Urban Affairs, last announced a bonus issue in 2017 in the same 1:2 ratio.
CMD K.P. Mahadevaswamy stated, “The decision to recommend a bonus issue is a testament to the robust performance and sound financial position of NBCC India Limited. This initiative aims to enhance shareholder value and demonstrates our dedication to our investors.”
Doubts Revealed
NBCC -: NBCC stands for National Buildings Construction Corporation. It is a government-owned company in India that works on construction projects.
Bonus Shares -: Bonus shares are extra shares given to current shareholders for free. They are given based on the number of shares a person already owns.
1:2 ratio -: A 1:2 ratio means that for every two shares a person owns, they will get one extra share for free.
Board of Directors -: The Board of Directors is a group of people who make important decisions for a company. They are like the leaders of the company.
Annual General Meeting -: An Annual General Meeting (AGM) is a yearly meeting where a company’s shareholders discuss and vote on important matters.
Shareholder approval -: Shareholder approval means that the people who own shares in the company need to agree with the decision.
Paid-up equity share capital -: Paid-up equity share capital is the total amount of money a company has received from shareholders in exchange for shares.
Rs. 180 crore to Rs. 270 crore -: Rs. 180 crore to Rs. 270 crore means the company’s share capital will increase from 180 crore rupees to 270 crore rupees. One crore is equal to 10 million.
2017 -: 2017 is the year when the company last gave out bonus shares before this announcement.