NBCC (India) Ltd shares turned ex-bonus in the ratio of 1:2 today. A bonus issue increases the number of outstanding equity shares, but reduces share price in proportion to number of bonus shares issued.
Adjusted of bonus issue, NBCC India shares were trading 3.99 per cent higher at Rs 117.25 on BSE. It is possible that trading apps of certain brokerages might be showing the unadjusted price and, thus, suggesting a 30 per cent-plus fall on the counter. The bonus share would eventually be credited to investors within two months from the date of issue approval i.e. by October 31.
Bonus shares are issued from free reserves and surplus of the company, with the aim of increasing liquidity on the counter. In the case of NBCC India, the bonus ratio was set at 1:2, which means one new fully paid-up share of NBCC India would be issued to existing shareholders for every two shares they held. Since October 7 is also the record date, the PSU will determine such eligible shareholders today only.
NBCC India would issue 90 crore shares of face value Re 1. They would be issued out of free reserves, created out of profits, and available as per audited financial statement on March 31, 2024.
NBCC India had a balance of Rs 1,959 crore as reserves & surplus available for capitalisation as per audited financial statements on March 31, 2024. NBCC India shares are up 109 per cent in 2024 so far and 192 per cent in the past one year.
The company last week announced a couple of order wins including Rs 47 crore orders for SIDBI Vashi redevelopment project and operation & maintenance works at International Craft Complex, New Delhi. It also announced Rs 101 crore worth consultancy order for construction of permanent office building in respect of regional offices (ROs) cum project implementation units (PIUs) of National Highways Authority of India.
An improvement in order intake, execution and margins along with traction in real estate monetisation bode well for the company, Nuvama said last month. NBCC India is well placed for growth, with a robust order book of Rs 81,300 crore and book-to-bill of 7.6 times, Nuvama said. It cited strong order accretion with year-to-date order wins at Rs 19,800 crore against Rs 23,500 crore in FY24; and improving real estate monetisation, as a reasons behind its optimism.