BigBloc Construction, a company that has given huge returns to investors over the past few years, will have a Board meeting on July 19 to consider and approve a bonus issue of shares.
The Board will also discuss increasing the company’s authorised share capital. Currently, the share capital is Rs 14.14 crore, divided into 7.07 crore equity shares with a face value of Rs 2 each.
Funding the Bonus Issue
If approved, the bonus shares will be paid from the company’s reserves, which are at Rs 89.87 crore.
BigBloc Construction has shown strong operational and financial performance, with a 5-year compound annual growth rate (CAGR) of 19% in sales and over 80% in net profit.
Purpose of Bonus Shares
The purpose of the bonus issue is to reward existing shareholders, enhance liquidity, and expand the shareholder base. Bonus shares are additional shares given to existing shareholders without any extra cost. The number of bonus shares received depends on the number of shares already held by the shareholders. Shareholders who own shares before the record date, set by the company, are eligible for these additional shares.
Once allotted, the bonus shares will have the same rights as the existing shares and will be eligible for any dividends and other corporate actions.
Financial Highlights for FY24
For the fiscal year 2024 (FY24), BigBloc Construction reported a consolidated net profit of Rs 30.69 crore. Revenue from operations for FY24 was Rs 243.22 crore, a 21% increase compared to Rs 200.11 crore in FY23. EBITDA for FY24 was Rs 56.15 crore, showing a growth of 12.29%.
Commitment
Narayan Saboo, Chairman of BigBloc Construction, said, “As part of our commitment to providing value to our shareholders, we are considering a bonus issue. This move will not only reward our existing shareholders for their continued support but also increase the company’s equity base, thereby enhancing liquidity. We anticipate sustained growth momentum and expect further advancements in the coming years.”
The company’s shares have risen by over 4000% in the last five years. On Friday, the stock closed 7% higher at Rs 255.5 on the NSE.
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