1:2 Bonus Shares: NBCC Allots 90 Cr Bonus Shares, Bags New Order Worth Rs 50 Cr

Navaratna PSU NBCC (India) Ltd shares today gained 0.82% and slipped 3.30% in past one-week. Last trading price of NBCC (India) shares on BSE is Rs 116.20 apiece. The company via its BSE filing dated October 9, 2024 informed about allotment of 90 crore bonus shares. The PSU also bagged fresh work order worth Rs 50 crore. Earlier, the multibagger PSU traded ex-bonus on October 7, 2024 in the ratio of 1:2.

NBCC shares recorded eye-catching surge year-to-date as shares soared more than 114% and gained 203% in last 1-year. Its market cap is 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:

NBCC Allots Bonus Shares: The BSE filing of NBCC dated October 9 stated, "This is in reference to captioned subject and earlier intimations dated August 27/ 2024 and August 31, 2024 and pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations/ 2015/ ("SEBI LODR Regulations"), we wish to inform that the Bonus Issue Committee of the Board of Directors of the Company at its meeting held today i.e./ October 9/ 2024, has allotted 90,00,00,000 (Ninety Crore) fully paid-up Bonus Equity Shares of the Face Value of Re 1/- (Rupee One only) each in the ratio 1 :2 i.e., One (1) new EquitY Bonus Share of Re 1/- each fully paid-up for every Two (2) existing Equity Shares of Re 1/- each fulIY paid- UP, held by the shareholders of the Company as on the record date i.e. Monday, October 07, 2024."

NBCC Bags New Work Order: The PSU also bagged new order today. The exchange filing said, "This is to inform that NBCC (India) Limited has recently been awarded the work of Construction of Integrated Sports Complex, in Dhamnagar Bhadrak, Odisha amounting to Rs. 50 Crores (Approx.)"

How To Be Eligible For Allotment of Bonus Shares: The company decides via the record date who will become eligible to receive bonus share. Firms that decides to distribute bonus shares fix a record date to identify how many current shareholders there are. The firms' bookkeepers cross check the records on the record date to recognize stockholders. When a firm announced the bonus share issue, it also declares an ex-date. The ex-date is the last day to buy the company's shares to become eligible for the bonus issue. If you join the firm post the ex-date, you will not be eligible for bonus shares. T+2 rolling settlement has been used in India that implies the ex-date is two days prior to the record date.

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.

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.