1:2 Bonus Issue: Buy NBCC Shares For Fresh TP Rs 134, When Bonus Shares Will Be Credited?

Navaratna PSU NBCC (India) Ltd shares today zoomed 1.56% and slipped 2.59% in last 1-week. Last trading price of NBCC (India) shares on BSE is Rs 117.05 apiece. The PSU stock traded ex-bonus on October 7, 2024 in the proportion of 1:2 implying eligible shareholders will receive 1 bonus share for every 2 shares held as on the record date. NBCC shares witnessed stunning rally year-to-date as shares surged over 114% and rallied 203% in last 1-year. The firm's market cap stood at Rs 31,657.50 crore. The PSU also declared Re 0.63/share dividend and shares traded ex-dividend on September 6, 2024. Key details below pertaining to bonus issue:

When Bonus Shares Will Be Credited To Demat Account? As soon as the shareholder has been identified as being qualified for bonus shares, they will be given a new ISIN (International Securities Identification Number). It hardly takes 15 days for the bonus shares to be credited to the shareholders' demat accounts when a new ISIN is allocated.

Should You Buy NBCC Shares: According A R Ramachandran, Independent SEBI Research Analyst, "NBCC is slightly bullish on the Daily charts with strong support at 108. A Daily close above resistance of 121 could lead to target of 134 in the near term."

NBCC (India) Shares Performance: The 52-week high price of NBCC (India) shares on BSE is Rs 139.90 per share (as on 28/08/2024) and 52-week low price is Rs 38.73 per share (as on 10/10/2023), respectively. NBCC (India) shares surged 27% in last 6-months, gained 449% in last 2-years, and rallied 418% in last 5-years.

What Does Ex Date and Record Date Signify In Bonus Share? The ex-bonus date is the day when a stock begins to trade sans the advantage of corporate action. The ex-date and record date for all corporate actions remain on the similar day as all the instruments are shifted to the T+1 settlement cycle.

Meanwhile, record date is the day when the firm checks the records to figure out the eligible shareholders for a corporate action. Shareholders holding the company's shares in their respective demat accounts on the record date will become eligible for corporate actions like the entitlement of stock splits, bonus shares, and dividends, among others.

Why Shares Price Come Down On Ex-Bonus Date? The average price of stock comes down soon after the credit of the bonus shares to the demat account as the bonus shares are credited without any cost. The holding average is calculated with the method of First in First Out (FIFO). Because bonus shares are free of cost, their buy price is considered as zero.

The average price, or buy average price, of a stock is reduced after the credit of bonus shares to the account because the bonus shares are credited at no cost, and the holding average is calculated using the First In First Out (FIFO) method. As bonus shares are free, their buy price is considered zero.

NBCC Dividend In 2024: The Company fixed Friday, September 06, 2024 as the Record Date for determining shareholders eligible to receive final dividend of Rs. 0.63/- per paid up equity share of Rs. 1/-each (i.e.@ 63%) for the FY 2023-24.

Shareholding: FII/FPI increased holdings from 4.33% to 4.43% in June 2024 quarter. Number of FII/FPI investors increased from 119 to 155 in June 2024 quarter. Mutual Funds have increased holdings from 2.98% to 3.04% in June 2024 quarter. Number of MF schemes increased from 10 to 13 in June 2024 quarter. Life insurance corporation of India (LIC) holds 5.96% stake in NBCC as of June 2024 quarter, according to Trendlyne.

About: Founded in 1960 as a Government of India Civil Engineering Enterprise, NBCC with its Headquarter in Delhi, today, holds the status of Navratna CPSE, and has emerged as the undisputed leader in the Construction Sector on the back of its capabilities, innovative approach, adherence to highest standard of quality, timely delivery and a dedicated workforce.

Disclaimer:

The stock has been picked from the brokerage report of A R Ramachandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.