The board of the company will also consider the proposal to increase the authorized share capital. The present share capital of the company is Rs. 14.14 crores and Rs. 7.07 crore divided into 2 equity shares of face value.
The bonus, if sanctioned, will be paid out of the Company’s reserves, amounting to Rs. 89.87 crores.
The company has registered strong operational and financial performance with a 5-year CAGR of over 19% in sales and 80% in net profit.
The purpose of the bonus issue consideration is to reward existing shareholders, increase liquidity and broaden the shareholder base.
A company issues bonus shares to its shareholders in order to increase the liquidity of the stock and lower its share price in order to make it affordable for investors.
Bonus shares are fully paid up additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to bear any additional cost to acquire them. The number of bonus shares you get depends on the number of shares of the firm you already own.
All shareholders who hold shares of the firm prior to the record date fixed by the firm, are eligible for additional shares.
Bonus shares once allotted shall rank pari-passu in all respects and carry the same rights as existing equity shares and shall be entitled to participate fully in any recommended dividend and other corporate actions.
For FY24, the company has Rs. 30.69 crores reported a consolidated net profit. Income from operations during FY24 was Rs. 243.22 crore was recorded, which in FY23 was Rs. 200.11 crore in operational revenue up 21% YoY. EBITDA for the same year was Rs. 56.15 crore, showing a growth of 12.29%.
“As part of our commitment to deliver value to our shareholders, we are considering a bonus issue. This move will not only reward our existing shareholders for their continued support but also increase the company’s equity base, thereby increasing liquidity. We expect a sustained growth momentum and expect further progress in the coming years,” said Narayan Sabu, Chairman, BigBlock Construction.
The company’s stock has increased by 4000% in the last five years. On the NSE on Friday, the stock rose 7% to Rs. closed at 255.5.
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