Shares of NBCC India Ltd. gained in early trade on Monday after the board approved a 1:2 bonus issue of shares to its shareholders.
The board set Oct. 7 as the record date to determine which shareholders will be eligible for the bonus shares, according to an exchange filing on Saturday. The bonus issue is subject to approval by shareholders at the forthcoming annual general meeting.
The company reported a balance of Rs 1,959 crore in reserves and surplus available for capitalisation as of March 31, 2024, according to the audited financial statements. This substantial reserve provides the company with the capacity to issue bonus shares without impacting its operational funds.
The bonus shares are expected to be credited to the accounts of eligible shareholders within two months from the date of the board’s approval, with the anticipated date for dispatch or credit being Oct. 31, 2024.
Shares of NBCC advanced 3% after market open to Rs 192 apiece. The benchmark NSE Nifty 50 was trading 0.26% higher.
The stock has risen 235% in the last 12 months and 134% year-to-date. The relative strength index was at 55.
Of the four analysts tracking the company, one maintains a 'buy', one suggests a 'hold' and two recommend a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 6.1%.
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