Construction material manufacturer BigBloc Construction announced on Monday that its board has sanctioned the issuance of one bonus share for each equity share owned by shareholders.
The board of directors, in their meeting on July 19, endorsed the issuance of bonus equity shares at a ratio of 1:1—meaning one bonus equity share will be issued for every existing equity share held by the shareholders as of the record date, according to the company's filing.
During the day, shares of the company soared to 7% to hit Rs 284.90 apiece on the BSE.
BigBloc Construction is one of the largest manufacturers of Aerated Autoclaved Concrete blocks, bricks and panels in India.
The bonus issue is subject to the approval of shareholders at the Annual General Meeting to be held on Aug. 29, it said.
"Free reserves of Rs 28.31 crore will be utilised for the bonus issue. Bonus issue is aimed to reward existing shareholders, enhance liquidity, and expand the shareholder base," the company said.
Following the bonus issue, the company's paid-up share capital will rise to Rs 28.31 crore.
Additionally, the board has sanctioned a final dividend of 20%, which is 40 paise per equity share. The promoter group shareholders, who hold 60.18% of the company, will forego their dividend, as stated by the company.
(With inputs from PTI)
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