Shares of Navratna company NBCC Limited were showing a decline of about 30 percent on some trading apps on Monday (7 October), which surprised many investors. However, later the investors came to know the truth. Actually, the decline in the shares is not due to the actual performance of the company, but due to technical adjustments after the bonus issue. Let us tell you that NBCC (India) comes under the Ministry of Housing and Urban Affairs of the Government of India and provides value-added construction services.
NBCC’s stock was trading at ex-bonus on October 7. The company is giving bonus shares to its shareholders in the ratio of 1:2. This ratio means that shareholders will get 1 share as a bonus on the existing 2 shares of NBCC they hold. Such bonus issues increase the number of shares, but the price of each share decreases in the same proportion. Due to this, the share price appeared low on some platforms.
October 7 is the record date for eligibility
Bonus shares are issued from the free reserves and surplus of a company with the aim of increasing liquidity in the market. The record date for determining the eligibility of shareholders for bonus shares is October 7, 2024. Shareholders whose names appear as beneficial owners of shares in the register of members of the company or in the records of the depository as on this date will be entitled to get bonus shares. The newly issued shares will be credited to the shareholders’ account by the end of October.
NBCC (India) gives bonus shares after 7 years
NBCC (India) gave bonus shares after 7 years. The company had earlier distributed bonus shares to its investors in a ratio of 1:2 in February 2017. The market cap of the company is Rs 30,500 crore. The face value of the share is Rs 1. By the end of June 2024, the government will hold a 61.75 percent stake in the company.
Investors got a 180 percent return in the last year
So far in the year 2024, the share price of the company has doubled. At the same time, within the last year, the stock has given a return of about 180 percent. At the beginning of this year, on January 1, 2024, the company’s shares were at Rs 81.79. In the last 4 years, the company’s shares have jumped by more than 623 percent.
