Following board approval at the next board meeting, NBCC LTd, a Navratna CPSE (Central Public Sector Enterprise), is expected to issue bonus shares to shareholders. By means of an exchange filing, NBCC notified the shareholders that the company’s board of directors would be meeting on Saturday, 31st August. “The board will take into account the recommendation for the issue of Bonus Shares to the company’s shareholders in the ratio, since it can bond fit by means of capitalization of reserves, subject to the shareholders’ approval,” it stated in a filing with the exchange.
Shares Climbing 117.20 Percent In 2024
NBCC Ltd, a state-owned construction company, has provided its shareholders with substantial gains, keeping pace with the PSU sector’s overall upswing. The country has had a massive rally for the stockholders this year, with the shares climbing 117.20 percent in the year 2024. The scrip completed the northward voyage in 365 days only, yielding returns of 261.96 percent. In contrast to the Sensex, which increased by 38.89 percent over the same period, it increased by a staggering 425.59 percent during the past two years, making investors immensely wealthy.
Tuesday’s trading saw NBCC’s share price close to a 1 percent increase, closing at Rs 177.45 on the NSE. The corporation set the record date for figuring out who is eligible to receive the final dividend amounting Rs 0.63 per share of Re 1 for the FY24 during an earlier meeting last week. The record date was set for September 6, 2024, a Friday. The last final dividend paid by the corporation to its stockholders was in September 2023.
Bonus Shares Would Be Discussed Further
The central PSU NBCC’s shares jumped 8% on Wednesday to reach a high of Rs 192.40 on the BSE following the announcement by the board that bonus shares would be discussed at the next board meeting. Technically speaking, NBCC’s shares are above its medium & long-term moving averages but below its 20-day exponential short-term moving average. The stock is bouncing off the midpoint of the RSI (relative strength indicator), or 50, on the indicator. In the past year, NBCC’s shares have surged by 25.7%, and thus far this year, they have gained 13%.
