BigBloc Construction Recommends 1:1 Bonus Issue

Rewarding Shareholders and Expanding Equity

BigBloc Construction Ltd, one of India’s largest manufacturers of Aerated Autoclaved Concrete (AAC) blocks, bricks, and panels, has announced a significant move to reward its shareholders. The company’s board of directors recommended issuing bonus equity shares in a 1:1 ratio. This means that shareholders will receive one bonus equity share for every existing share they hold.

Increasing Authorized Share Capital

In addition to the bonus issue, the board also approved a proposal to increase the company’s authorized share capital from Rs. 15 crore to Rs. 30 crore. This increase is subject to approval by the shareholders and regulatory authorities. The new share capital will be divided into 15 crore equity shares of Rs. 2 each.

Details of the Bonus Issue

The bonus issue is designed to reward existing shareholders, enhance liquidity, and expand the shareholder base. The free reserves of Rs. 28.31 crore will be utilized for this bonus issue. Following the bonus issue, the paid-up share capital of BigBloc Construction will increase to Rs. 28.31 crore, divided into 14.15 crore equity shares of Rs. 2 each.

Timeline for the Bonus Shares

Subject to necessary approvals, the bonus shares are expected to be credited to shareholders’ accounts within two months from the board’s approval date, i.e., on or before September 18, 2024.

Final Dividend Declaration

Alongside the bonus issue, the board has declared a final dividend of 20%, equivalent to Rs. 0.40 per equity share for FY 2023-24. The record date for the dividend payment is July 26, 2024. Notably, the promoter group, holding 60.18% of the company’s shares, has waived their dividend in light of the company’s forthcoming expansions.

Financial Performance

BigBloc Construction has reported impressive financial results for FY24, with a consolidated net profit of Rs. 30.69 crore. The company’s revenue from operations reached Rs. 243.22 crore, marking a 21.55% year-over-year increase from Rs. 200.11 crore in FY23. EBITDA for FY24 stood at Rs. 56.15 crore, up by 12.29% compared to the previous year. Over the past five years, the company has achieved a Compound Annual Growth Rate (CAGR) of 19% in sales and over 80% in net profit.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.