NBCC board proposes to issue 2:1 bonus shares

The board of directors of National Buildings Construction Corporation (NBCC) at its meeting on Wednesday proposed a bonus issue if one share for every two existing shares, in a move that would raise the equity base of the state-owned construction company to Rs 90 crore from Rs 60 crore at present.

The bonus shares are likely to be credited into the accounts of shareholders by 3 March 2017.

NBCC had reserves of Rs1,368.5 crore as of 31 March 2016 and the bonus issue seeks to capitalises on this accumulated reserves while boosting the company's capital base.

NBCC, which is engaged in project management consultancy (PMC), real estate development and engineering, procurement and construction (EPC) contracting, works under the administrative control of the ministry of urban development.

The company last month bagged a Rs466-crore contract for the construction of residential-cum-training complex for Special Protection Group at sector-21, Dwarka, New Delhi. 

NBCC had reported a net profit of Rs67 crore on revenues of Rs1,249 crore for the September quarter.

NBCC shares saw profit-booking post announcement of the bonus issue, causing a fall in the share price. Its shares fell as much as 3.3 per cent compared to a gain of 1.3 per cent earlier in the day.

NBCC shares had rallied nearly 12 per cent in the past week ahead of the decision of its board on bonus issue.