The Power Finance Corp’s Board has approved a 1:4 bonus issue of equity shares to its investors. This means that for every four shares an investor holds, they will receive an additional bonus share. The company stated that this will be in the form of one bonus equity share for every four existing fully paid-up equity shares. The total capitalization for this issuance will not exceed Rs 660 crore.
The bonus shares will be drawn from the securities premium account and are subject to shareholder approval. The specific record date for eligibility will be announced later, and the bonus shares are anticipated to be credited within two months from the Board’s approval.
This move is aimed at enhancing liquidity and making the company’s stock more affordable by reducing its price. Importantly, the bonus shares will hold the same rights as existing equity shares. All shareholders who own shares before the record date will be eligible for the bonus shares.
It’s noteworthy that the decision to defer dividend payments for the 2023-24 financial year has also been made by the Board. In the first quarter, Power Finance Corp experienced a 26% YoY increase in consolidated net profit and a 13% increase in revenue from operations. On the stock market, the company’s shares closed 1.37% lower at Rs 263.40 on the NSE.
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