The company’s Board will also consider a proposal to increase the authorised share capital. The company’s current share capital stands at Rs 14.14 crore divided into 7.07 crore equity shares of Rs 2 face value.
The bonus, if approved, will be paid from the reserves of the company, which stand at Rs 89.87 crore.
The company has reported a strong operational and financial performance with a 5-year CAGR of 19% in sales and over 80% in net profit.
The bonus issue consideration is aimed at rewarding existing shareholders, enhancing liquidity, and expanding the shareholder base.A company issues bonus shares for its shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.
The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
For FY24, the company has reported a consolidated net profit of Rs 30.69 crore. Revenue from operations during FY24 was reported at Rs 243.22 crore, rise of 21% year-on-year as compared to operational revenue of Rs 200.11 crore in FY23. EBITDA for the same year stood at Rs 56.15 crore, showing a growth of 12.29%.
“As part of our commitment to providing value to our shareholders, we are considering a bonus issue. This move will not only reward our existing shareholders for their continued support but also increase the company’s equity base, thereby enhancing liquidity. We anticipate sustained growth momentum and expect further advancements in the coming years,” said Narayan Saboo, Chairman, of Bigbloc Construction.
The company’s shares have risen as much as over 4000% in the last five-year period. On Friday, the stock closed 7% higher at Rs 255.5 on the NSE.