NEW DELHI: Construction material producer BigBloc Construction on Monday said its board has approved the issue of one bonus share for every equity share held by shareholders.
The board of directors in its meeting on July 19 recommended the issue of bonus equity shares in the proportion of 1:1, that is, one bonus equity share for every existing equity share held by the company shareholders as on the record date, the company said in a filing.
During the day, shares of the company soared to 7 per cent to hit Rs 284.90 apiece on the BSE.
BigBloc Construction is one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) blocks, bricks and panels in India.
The bonus issue is subject to the approval of shareholders at the Annual General Meeting to be held on August 29, it added.
“Free reserves of Rs 28.31 crore will be utilised for the bonus issue. Bonus issue is aimed at to reward existing shareholders, enhance liquidity, and expand the shareholder base,” the company said.
Post the issuance of bonus, the company’s paid-up share capital will increase to Rs 28.31 crore.
The board has also approved the declaration of a final dividend at 20 per cent i.e. 40 paise per equity share. Promoter Group shareholders, comprising 60.18 per cent of the company, are waiving their dividend, the company said.
Shares of the company were trading 2.08 per cent higher at Rs 271.75 per piece on the BSE.
