NBCC board in a meeting today has approved bonus share issue in 2:1 ratio, which are likely to be credited by March 3, 2017.
The board of directors of NBCC in a meeting today proposed issuance of one bonus share for every two shares held in their account. Post the bonus issue, the equity base of NBCC will increase from Rs 60 crore to Rs 90 crore.
Under a bonus issue, a company capitalises its accumulated reserves and issues additional shares to existing investors according to their shareholding ratio.
NBCC had reserves worth Rs 1,368.5 crore as of March 31, 2016.
However, NBCC shares witnessed profit booking post announcement of the bonus issue. Its shares fell as much as 3.3 per cent compared to a gain of 1.3 per cent earlier in the day. NBCC shares had rallied nearly 12 per cent in last one week ahead of the decision of its board on bonus issue.
NBCC has been a preferred pick of for many analysts in the infrastructure space.
NBCC, under the administrative control of Ministry of Urban Development, is present in three main segments -- Project Management Consultancy (PMC), Real Estate Development and EPC Contracting.
Last month, it had bagged a contract for the construction of residential cum training complex for Special Protection Group at sector-21, Dwarka, New Delhi amounting to Rs. 466 crore.
NBCC had reported a net profit of Rs. 67 crore on revenues of Rs. 1,249 crore for the September quarter.
As of 03.05 p.m., NBCC shares traded 3 per cent lower at Rs 246.8 apiece compared to 0.05 per cent fall in the broader Nifty.
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