BONUS ALERT: SHARES OF THIS ₹1,800 CRORE COMPANY JUMPS 9% ON BONUS SHARE PROPOSAL

Shares of Bigbloc Construction Ltd., one of the largest manufacturers of AAC blocks, were trading with gains of as much as 9% on Friday, July 5.

The company informed the exchanges that its board will mull the issue of bonus shares at its board meet on Friday, July 19.

Record date for the bonus issue is yet to be determined.

Along with that proposal, the board will also consider an increase in the authorised capital of the company.

This will be the first instance of the company considering an issue of bonus shares to shareholders. In February this year, the company had declared a dividend of ₹0.2 per share.

The companies issue bonus shares to capitalise on their free reserves, increase their earnings per share and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.

Only those investors will be eligible for bonus shares who will buy the stock before the ex-date. If an investor purchases the shares on the ex-date or after that, they will not be eligible to get bonus shares.

Bigbloc Construction shares have recovered 10% from the day's low of ₹235.14 post the announcement, currently trading 5.84% higher at ₹252.47. The stock has risen over 50% so far this year.

2024-07-05T09:58:03Z dg43tfdfdgfd