IGL Board Approves 1:1 Bonus Issue, Increase Share Capital
Indraprastha Gas Ltd. will also increase its authorised capital to Rs 1,000 crore from Rs 220 crore.
Indraprastha Gas Ltd.'s board of directors approved an issue of bonus shares to its shareholders and increase its authorised share capital to Rs 1,000 crore from Rs 220 crore on Tuesday, according to an exchange filing.
At a meeting, the board approved the issuance of bonus shares in a 1:1 ratio. For every existing fully paid-up equity share of Rs 2 each, shareholders will receive one bonus equity share with a face value of Rs 2, according to the filing.
This move is designed to reward current shareholders and is expected to increase the number of shares in circulation. The total capitalisation for the bonus issue amounts to Rs 140 crore, which will be derived from IGL's free reserves, providing the company with additional flexibility to support future growth initiatives, it said.
The bonus share issuance will be subject to shareholder approval and IGL has estimated that the bonus shares will be credited or dispatched to shareholders on or before Feb. 9, 2025.
The increase in the authorised share capital is set to be accomplished by converting the existing share capital structure into a larger framework,, dividing it into 500 crore equity shares with a face value of Rs 2 each. This expansion, subject to approval from IGL's shareholders, will be accompanied by an alteration in the company's memorandum of association, it said.
Shares of IGL rose as much as 2.27% during the day to Rs 394.30 apiece on the National Stock Exchange. It was trading 0.21% higher at Rs 386.35 per share, compared to a 0.31 decline in the benchmark Nifty at 2:42 p.m.
The stock has fallen 7.85% on a year-to-date basis. The total traded volume so far in the day stood at 0.60 times its 30-day average. The relative strength index was at 52.
Out of the 36 analysts tracking the company, 15 have a 'buy' rating on the stock, 14 suggest 'sell' and seven recommend 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 4.9%.
