Shares of NBCC (India) Ltd are in focus on Monday morning after the board of PSU firm recommended issuance of the bonus shares to its shareholders in the ratio of 1:2. Eligible shareholders would get one new fully paid-up equity share of Rs 1 each for every two existing fully paid up equity shares of Rs 1 each as on record date, subject to the shareholders in the forthcoming Annual General Meeting.
The bonus issue was announced following a 232 per cent rally on the PSU counter in the past one year. The board has fixed Monday October 7 as record date to determine the eligibility of the members to receive bonus shares.
The total number of shares proposed to be issued are 90 crore. The bonus equity shares would be issued out of free reserves created out of profits and available, as per Audited Financial Statements on March 31, 2024.
NBCC (India) has a balance of Rs 1,959 crore being reserves and surplus available for capitalisation as per Audited Financial Statements on March 31, 2024. The bonus shares are likely to be credited within two months from the date of approval of board i.e. by October 31, 2024.
Analysts were quite positive in NBCC fundamentals, citing an improvement in order intake, execution and margins along with traction in real estate monetisation. Nuvama last month maintained its ‘HOLD’ on the stock with a target price of Rs 198. It noted that NBCC India's book-to-bill at 7.6 times seems robust but a total 54 per cent of orders pertain to ‘self-revenue generating projects’, wherein the pace of real estate monetisation would determine execution.
It noted that NBCC also planning a bulk sale in the Sarojini Nagar, Delhi, project post the receipt of occupancy certificate. In the Amrapali project, the company has sold Rs 3,650 crore worth of inventory to date. In terms of its own real estate sales, NBCC sold Rs 63 crore in Q1FY25 and plans to sell Rs 600 crore in FY25. The company is also looking to diversify into railway and other infra segments.