Here’s the latest update from NBCC (India) that’s making waves in the business world.
NBCC (India) has a big announcement for its shareholders. The company’s board has recommended giving out bonus equity shares. Specifically, for every 2 shares that an eligible shareholder owns, they’ll get 1 bonus share. This is great news for investors, as it means more profit from their investments.
The Important Dates You Need to Know
The board of directors has set October 7, 2024, as the crucial record date. This is the date they will use to determine who exactly will be eligible to receive these bonus shares. But remember, this bonus issue is not a done deal yet—it still needs to get the green light from the shareholders.
Where’s the Money Coming From?
The bonus equity shares will be issued out of free reserves. These reserves were built up from the company’s profits and are documented in the audited financial statements as of March 31, 2024. To give you an idea of how solid NBCC’s financials are, their reserves and surplus were a hefty Rs 1,959 crore as of the same date.
When Will You Get Your Bonus Shares?
Mark this date on your calendar: October 31, 2024. That’s the latest date by which the bonus shares will be credited or dispatched, assuming the board’s approval goes through without any hiccups.
A Peek into NBCC’s Business Operations
NBCC (India) is involved in three significant segments:
- Project Management Consultancy: They provide expert advice for managing various projects.
- Real Estate: NBCC is also involved in selling and managing real estate.
- Engineering, Procurement & Construction: This segment takes care of constructing buildings, roads, and other infrastructure.
Solid Financial Performance
The company has shown a robust performance recently. For Q1 FY25, NBCC reported a consolidated net profit of Rs 104.62 crore, marking a 39.2% increase from Rs 75.14 crore in Q1 FY24. Not just that, their net sales also saw a rise of 10.7% year-on-year, reaching Rs 2,118.68 crore in Q1 FY25.
However, despite these impressive figures, the NBCC share price took a hit recently. On Friday, August 30, 2024, the stock ended 4.29% lower at Rs 186.35.
It’s clear that while the company’s operational aspects and performance have shown positive signs, market sentiments sometimes take their own route.
Stay tuned for more updates on this developing story and other important business news.