NBCC announces issue of bonus shares in 1:2 ratio; to use Rs 90 cr free reserve for this purpose

State-owned NBCC (India) Ltd on Saturday said the board has approved issue of bonus shares in a ratio of 1:2 to eligible shareholders and the company will utilise Rs 90 crore free reserve for this purpose.

In a regulatory filing, the company informed that the board has approved issuance of bonus shares and fixation of record date.

"The Board of Directors has recommended the issuance of bonus shares to the shareholders of the company in the ratio of 1:2 i.e. one new fully paid-up equity share of Rs 1 each for every two existing shares to the eligible members as on the record Date," the company said.

The company proposes to issue 90 crore shares as bonus shares. "Free reserves of Rs 90 crore would be utilised for the issue of bonus Shares," the NBCC said. This is subject to the approval of the shareholders in the forthcoming Annual General Meeting.

The Board has fixed October 7, 2024 as record date to determine the eligibility of members to receive bonus shares.

NBCC said it has a balance of Rs 1,959 crore as reserves & surplus for capitalisation. The company's CMD K P Mahadevaswamy said, "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 also achieved highest ever turnover, business development and profit for the financial year 2023-2024, he added.

“This initiative aims to enhance shareholder value and demonstrates our dedication towards investors. We believe that this initiative will further strengthen the confidence of our shareholders and reflect our ongoing commitment to creating value,” Mahadevaswamy said.

The last bonus that NBCC (India) had announced was in 2017 in the ratio of 1:2.

"NBCC with its robust order book of over Rs 81,300 crore and a strategic focus on redevelopment, PSU land monetization, real estate development, overseas expansion and PMC works, is well positioned to contribute towards a Viksit Bharat," he said. NBCC is mainly into project management consultancy (PMC) and real estate business. PTI MJH