The state-run business NBCC Ltd. saw a surge in its shares on Wednesday, touching an intraday high of Rs 205.95 on the NSE, up 16%, following the announcement that the company is planning for a bonus issue. 

According to a Tuesday exchange filing, the NBCC board is scheduled to meet on August 31 to consider this proposal.

In the filing, the company stated, “The board will 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 the shareholders’ approval.”

NBCC has proposed a bonus issue, which would provide shareholders with one bonus share for every two shares they already own. This is the first such proposal since the company announced a 1:2 bonus in 2017. As of now, we are unsure of the record date for the potential bonus issue. 

This week, NBCC announced, in addition to the bonus share proposal, that 6 September 2024 will be the record date for the previously planned dividend of Rs 0.63 per share. The payout is subject to shareholder approval at the annual general meeting on 25 September.

NBCC shares have demonstrated favourable returns over a wide range of time periods. Over the past month, the company’s shares have gained 1.45%, indicating both its stability and potential for growth. The noteworthy increase of 43.71% over the previous six months indicates a strong rising trend. 

The stock’s optimistic trend for the current fiscal year has been reinforced by the NBCC shares’ 132.12% gain thus far this year. When looking at things more broadly, the stock has shown that it is still growing and appealing to investors, as seen by its remarkable return of more than 273.63% throughout the last 12 months.

At 12:32 pm, the shares of NBCC were trading 15.56% higher at Rs 205.28 on NSE.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!