NBCC to consider bonus issue, shares zoom 8%

NBCC to consider bonus issue, shares zoom 8%

by

In intraday trading on Wednesday, shares of the state-owned Navratna business NBCC (India) shot up to 8.30 per cent, closing only Rs 6 short of its 52-week high of Rs 198.25, reached on July 9, 2024.

The company’s announcement that the board will convene on Saturday, August 31, 2024, to deliberate a proposal for bonus shares to be issued to equity shareholders is credited with sparking the upward move in NBCC’s stock price.

“…to inter-alia consider the proposal for the issue of Bonus Shares to the equity shareholders of the company in the ratio, as it may deem fit, by way of capitalization of reserves, subject to Shareholders’ approval,” NBCC said in a regulatory filing on the BSE.
NBCC (India) is a public sector enterprise under the Ministry of Housing and Urban Affairs (MoHUA) owned by the Government of India. Its three main business sectors are engineering procurement and construction, real estate, and project management consulting.
As of August 28, 2024, NBCC’s market capitalisation on the BSE was Rs 33,930 crore. The BSE 500 index includes the civil construction company as one of its constituents.
According to BSE analysts, this Navratna stock has rallied 129.98% year to date, yielding a multi-bagger return, while the Sensex has soared 13.03 per cent in the same time frame.

Over the years, NBCC shares have demonstrated impressive historical performance. NBCC shares have increased 35.52 per cent over the last three months, 42.12 per cent over the last six months, and a staggering 269.77 per cent over the last year, according to BSE data.

According to BSE analytics as of August 28, 2024, this Navratna PSU stock has returned 456.51 per cent over the last two years, 422.50 per cent over the last five years, and an incredible 568.44 per cent over the last ten years.

NBCC shares were up 6.08 per cent from their previous closing of Rs 177.65 on the BSE to trade at Rs 188.45 at approximately 11:00 AM. NBCC shares were up 6.11 per cent from their previous close of Rs 177.64 to Rs 188.50 on the NSE. Simultaneously, about 497.43 lakh equity shares of NBCC were traded on the NSE, valued at Rs 941.53 crore.

Leave a Comment