Shares of NBCC (India) Ltd jumped over 4 percent on October 7 as the stock traded ex-bonus. Today also marks the record date for determining shareholders eligible to receive the bonus shares.
The PSU had announced a bonus issue in a 1:2 ratio, granting one new fully paid-up equity share of Re 1 for every two existing shares held.
A total of 90 crore bonus NBCC India equity shares will be issued out of free reserves, created out of profits, and available as per the audited financial statement on March 31, 2024, the company informed in a regulatory filing.
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. The bonus shares would be credited within two months from the date of approval of the Board i.e. by October 31, 2024, the PSU added.
Follow our market blog to catch all the live action
At 9:30 am, NBCC shares were trading 4.1 percent higher at Rs 117.32 on NSE. The stock has risen 43 percent so far this year, outperforming Nifty's returns of 15 percent.
In the past 12 months, the counter has rallied 103 percent, more than doubling investors' capital. In comparison, Nifty gained around 28 percent during this period.
Nuvama remains bullish on the PSU stock as it believes that an improvement in order intake, execution and margins along with traction in real estate monetisation bode well for the company.
NBCC India is poised for growth with a strong order book of Rs 81,300 crore and a book-to-bill ratio of 7.6x, according to Nuvama's report last month. The brokerage highlighted robust order inflows, with year-to-date wins at Rs 19,800 crore compared to Rs 23,500 crore in FY24, along with improved real estate monetisation as key factors driving its positive outlook.
“A buoyant realty cycle is resulting in improved opportunities for the company with many PSUs/government looking to monetise surplus land holdings,” it added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
