Chennai-based Thejo Engineering Limited, an engineering solutions provider, will come out with a bonus issue. The board of the company on August 30 approved a 2:1 bonus issue.
Thejo shares closed on Monday at Rs 2.807.50 on the NSE.
VA George, chairman of the company, told Moneycontrol that the bonus issue was a step toward Thejo graduating to the main platform on the NSE.
The NSE, he said, set certain terms for a company to graduate to its main trading platform.
Thejo would dip into its reserves for the proposed bonus issue. Post the bonus issue, the share capital of the company would breach the Rs 10-crore limit.
The company reported a consolidated revenue of Rs 329.71 crore, resulting in a CAGR (compounded annual growth rate) of 14 percent for the year ended March 2021.
The company also declared a dividend of 60 percent (i.e. Rs 6 per equity share of Rs 10 each) for the financial year ended March 2021 as against 50 percent for the previous year.
George joined the company as president and CEO many years ago, and became managing director subsequently. Since the founder chairman has retired, he has been elevated to the position of executive chairman. He said the company had already put in place a seamless succession plan.
George said the outlook for the current financial year “is one of cautious optimism. In this totally unpredictable situation, what we can do is to remain agile and resilient so as to adapt faster to sudden changes in the environment”.
The products as well as services offerings of the company are intended for core sector industries especially steel, mining and power sector. “With the steel sector consolidating to some extent and the central government announcing various policy measures in the coal and mining sector, there is an increased possibility of new business opportunities,” he said.
Given the prevailing circumstances, the future outlook continued to remain one of guarded optimism, he added.
With digitalisation playing a big role in satiating the demands of the customers in an increasingly competitive market environment, the company, he said, was in the process of implementing a full-fledged digitalisation plan.
The minimum lot size for trading in the shares of the company, in the meanwhile, has been reduced from 100 to 50 with effect from September 6, 2021.Thejo is an engineering solutions provider for bulk material handling, mineral processing and corrosion protection to the core sector industries such as mining, power, steel, cement, ports and fertilisers. The company provides services like belt conveyor maintenance and operations. It has four manufacturing units, all located near Chennai.