This smallcap multibagger stock to consider bonus issue on July 19. Check details
BigBloc Construction, which has delivered multibagger returns to investors over the last few years, will meet on July 19 to consider and approve the bonus issue of shares.
The company’s Board will also consider a proposal to increase the authorised share capital. The company’s current share capital stands at Rs 14.14 crore divided into 7.07 crore equity shares of Rs 2 face value.
The bonus, if approved, will be paid from the reserves of the company, which stand at Rs 89.87 crore.
The company has reported a strong operational and financial performance with a 5-year CAGR of 19% in sales and over 80% in net profit.
The bonus issue consideration is aimed at rewarding existing shareholders, enhancing liquidity, and expanding the shareholder base.
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
