Indraprastha Gas Ltd.'s board will meet on Dec. 10 to consider and approve the proposal for issue of bonus shares to shareholders, an exchange filing said on Wednesday.
The city gas distribution company has over 2.6 lakh shareholders who own 70 crore fully paid up equity shares. The board will decide the ratio of bonus issue as well as the ex and record date to determine the eligibility of shareholders.
Bonus shares are an effective way for companies to reward their shareholders, improve liquidity, and maintain financial flexibility. To qualify for the bonus issue, investors must acquire shares at least one day before the record date.
As per the shareholding data available with the BSE, promoters Bharat Petroleum Corp. and GAIL India Ltd. have 22.5% shareholding each in IGL. Retail investors own 5.53% stake in the company.
Last month, IGL paid an interim dividend of Rs 5.5 per share. The gas distributor also rolled out a final dividend of Rs 5 per share for fiscal 2024 in September.
Indraprastha Gas Share Price
IGL's share price closed 0.1% lower at Rs 360.6 apiece on the NSE, ahead of the announcement, compared to 0.04% gain in the benchmark Nifty 50 index. The stock has fallen by 14% so far this year, and by 10% in the last 12 months.
Of the 36 analysts tracking the company, 15 maintain a 'buy' rating, seven recommend a 'hold' and 14 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target of Rs 406.45 implies an upside of 12.8%.
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