“The board has recommended issue of bonus shares to eligible shareholders as on the record date in the ratio of 1:2, i.e. one new fully paid-up equity share of Rs 1 for every two existing equity shares,” the company said in a statement.
The company is proposing to issue 900 million shares as bonus shares.
“Free reserves of Rs 900 crore will be earmarked for issue of bonus shares,” NBCC said.
This is subject to shareholders’ approval at the next annual general meeting. The board has fixed October 7, 2024 as the record date for determining whether members will be eligible to receive the bonus shares. NBCC said it has a balance of Rs 1,959 crore as reserves and surplus for capitalisation. “The decision to recommend the bonus issue is a testimony of the robust performance and healthy financial position of NBCC India Limited,” its CMD KP Mahadevaswamy said.
The company also added that it has achieved its highest ever revenue, business development and profits in the financial year 2023-2024.
“This initiative is aimed at enhancing shareholder value and demonstrates our dedication to our investors. We are confident that this initiative will further strengthen shareholder confidence and reflect our ongoing commitment towards value creation,” Mahadevaswamy said.
The last bonus declared by NBCC (India) was in 2017, where the ratio was 1:2.
“NBCC is well positioned to contribute to realising Viksit Bharat with a robust order backlog of over Rs 81,300 crore and strategic focus on redevelopment, public sector land monetisation, real estate development, overseas expansion and PMC operations,” he said.
NBCC is primarily engaged in project management consulting (PMC) and real estate businesses.
