NBCC India bonus shares: The bonus issuance was issued following a 232 percent increase in the PSU counter over the last year. The board has set Monday, October 7, as the record date for determining membership eligibility.
According to certified financial accounts, NBCC bonus shares will be given from free reserves created from profits that are accessible. NBCC now has a balance of Rs 1,959 crore in reserves and surplus available for capitalization.
Shares of NBCC (India) Ltd were in focus on Monday morning after the board of the PSU corporation suggested issuing bonus shares to its shareholders in a 1:2 ratio. Eligible shareholders would receive one additional fully paid-up equity share of Rs 1 for every two existing fully paid-up equity shares of Rs 1 each as of the record date, subject to approval by shareholders at the upcoming Annual General Meeting.
The bonus issue was issued following a 232 percent rally in the PSU counter during the last year. The board has designated Monday, October 7, as the record date for determining whether members are eligible to earn bonus shares.
The total number of shares proposed for issuance is 90 crore. The bonus equity shares would be given from free reserves earned from profits that were accessible as of March 31, 2024, according to the Audited Financial Statements.
According to the audited financial statements for March 31, 2024, NBCC (India) has a balance of Rs 1,959 crore in reserves and surplus available for capitalization. The bonus shares are expected to be credited within two months after the board's approval, by October 31, 2024.
Analysts were optimistic about NBCC's fundamentals, citing improvements in order intake, execution, and margins, as well as advances in real estate monetization. Last month, Nuvama maintained its 'HOLD' rating on the company, setting a target price of Rs 198. It was highlighted that NBCC India's book-to-bill ratio of 7.6 times appears sturdy, but 54% of orders are for 'self-revenue producing projects', where the rate of real estate monetization determines execution.
It was observed that NBCC intends to conduct a mass sale in the Sarojini Nagar, Delhi, project following the issuance of the occupancy certificate. The business has sold Rs 3,650 crore in goods for the Amrapali project so far. In terms of its own real estate sales, NBCC sold Rs 63 crore in Q1 FY 25. In terms of real estate sales, NBCC sold Rs 63 crore in Q1 FY25 and expects to sell Rs 600 crore in FY25. The corporation is also trying to expand into the railway and other infrastructure sectors.
