Shares of the central PSU NBCC surged 8% on Wednesday to its day’s high of Rs 192.40 on BSE after the company’s board announced that it would consider the issue of bonus shares in the upcoming board meeting.
“It is hereby informed that meeting of Board of Directors of the Company, NBCC (India) Limited, is scheduled to be held on Saturday, August 31, 2024 to inter-alia “consider the proposal for 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 the Shareholders approval,” said the company in a filing to the exchanges.
In case the company proceeds with the bonus issue, this will be the second instance of the company giving out bonus shares to its shareholders. Prior to this, the company had issued bonus shares in February 2017, according to the Trendlyne data.
The company, however, frequently rewards its shareholders in the form of dividend payouts.
Technically, the shares of NBCC are placed below its short-term, 20-day exponential moving average but above its medium and long-term moving averages. On the relative strength indicator (RSI), the stock is oscillating near the 50 level, which is a mid-range on the indicator.
NBCC shares have increased by 25.7% in the last one year while in the current year so far, it has gained 13%.
NBCC (India) is a central public sector enterprise under India’s Ministry of Housing and Urban Affairs. It provides value-added construction services and operates primarily in three segments: project management consultancy, real estate development, and EPC (Engineering, Procurement, and Construction) contracts.
The company has been recognized as a Navratna Enterprise by the Government of India.
