Shares of NBCC (India) Ltd are set to turn ex-bonus today, marking an important milestone for shareholders. As of October 7, 2024, the company will officially issue bonus shares in a 1:2 ratio, meaning that eligible shareholders will receive one new fully paid-up equity share for every two existing shares they hold. This move is part of the company’s strategy to enhance shareholder value and capitalize on its strong financial position.
Bonus Share Issuance Details
The record date for determining eligibility for the bonus shares aligns with today’s ex-date. A total of 90 crore bonus equity shares will be issued from the company’s free reserves, which were created from profits as reflected in the audited financial statements dated March 31, 2024. According to the company’s filings with the Bombay Stock Exchange (BSE), these bonus shares are expected to be credited to shareholders’ accounts within two months, by October 31, 2024.
Strong Performance and Growth Prospects
NBCC India has shown remarkable growth, with its shares surging 109% in 2024 and 192% over the past year. Analysts attribute this impressive performance to several factors, including improved order intake, execution capabilities, and profit margins. The company has also seen significant traction in real estate monetization, which bodes well for its future prospects.Recently, NBCC announced several new orders, including a Rs 47 crore contract for the redevelopment of the SIDBI Vashi project and maintenance works at the International Craft Complex in New Delhi. Additionally, a consultancy order valued at Rs 101 crore was secured for constructing a permanent office building for the National Highways Authority of India.
Robust Order Book and Market Position
With a substantial order book valued at Rs 81,300 crore and a book-to-bill ratio of 7.6 times, NBCC India is well-positioned for continued growth. The company has recorded year-to-date order wins totaling Rs 19,800 crore, compared to Rs 23,500 crore in FY24. This robust performance is indicative of strong order accretion and improving real estate monetization opportunities.Market analysts at Nuvama have expressed optimism about NBCC’s future, citing a buoyant realty cycle that is creating improved opportunities for the company as various public sector undertakings (PSUs) and government entities look to monetize surplus land holdings.
