Power Finance Corp announces 1:4 bonus issue of shares to investors

Power Finance Corp announces 1:4 bonus issue of shares to investors

The Board of Power Finance Corp has approved a bonus issue of equity shares to its investors in the proportion of 1:4. This means, for every four shares investors hold, they will get an additional bonus share.

“The Board approved the issue of bonus shares to the shareholders of the company in the ratio of 1:4, i.e, 1 bonus equity share of Rs 10 each fully paid-up for every 4 existing equity shares of Rs 10 each fully paid-up, to the eligible members by capitalizing a sum not exceeding Rs 660 crore,” the company said in a filing.

The bonus shares will be paid out of the sum outstanding to the credit of the securities premium account, subject to the approval of shareholders.

The record date for the same will be informed soon and the bonus shares will be credited within two months from the date of approval of the Board.

A company issues bonus shares for its shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.

Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.

All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.

Further, the Board has decided to defer the proposal for paying a dividend for the financial year 2023-24.

In the first quarter, Power Finance Corp consolidated net profit rose 26% year-on-year to Rs 5,982 crore, while revenue from operations jumped 13% to Rs 20,992.

On Friday, the company’s shares closed 1.37% lower at Rs 263.40 on NSE.

Source link

What is your reaction?

In Love
Not Sure

You may also like

More in:Business