NBCC’s Big Move: Board Set to Discuss Bonus Shares

NBCC Ltd., the well-known Navratna Central Public Sector Enterprise, is reportedly gearing up to discuss a potential bonus share issue in its board meeting on August 31, 2024. According to a recent filing, the board will review the proposal to issue bonus shares, which would be decided based on the capitalization of reserves and need shareholders’ approval to go through.

New Orders & Dividends 

The company also set September 6, 2024, as the record date for its final dividend of Rs.0.63 per share. This dividend is pending approval at the Annual General Meeting on September 25, 2024. It’s also interesting that NBCC last handed out a dividend in September 2023.

Earlier this month, NBCC scored a massive Rs 15,000-crore deal with the Srinagar Development Authority to build a Satellite Township in Bemina, Srinagar, covering 406 acres. The company’s order book is booming, with a 26% jump from Rs.64,000 crore at the end of March, 2024 to around Rs.81,000 crore, and they’re aiming for Rs.1 lakh crore by the end of this year.

Stock & Returns Soar Higher

NBCC has been on a roll lately, with its stock rocketing up over 135% in 2024 alone. By yesterday’s close, shares were trading at Rs.177.45 on the NSE. Over the past year, the stock has seen a phenomenal 276% increase. This puts it way ahead of the Sensex, which only managed a 38.89% gain in the same timeframe. The shares today are trading at Rs.189.80, around 6.8% higher.

Conclusion: Wrapping Up, this will be the first time NBCC considers issuing bonus shares since 2017, when they did a 1:2 bonus issue. With the stock performance looking strong and a growing order book, the company seems in a good direction. In the meantime, the trading window for NBCC shares will be closed from August 28 until 48 hours after the board meeting.

Maximise your trading potential with our user-friendly trading app. Get the Angel One share trading app now and trade efficiently!

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.