NMDC Declares 2:1 Bonus Share Issue Amid Robust Q2 Performance
Contents
- 1 NMDC share price
- 1.1 NMDC Declares 2:1 Bonus Share Issue Amid Robust Q2 Performance
- 1.1.1 Purpose of the Bonus Share Issuance
- 1.1.2 Eligibility for NMDC’s Bonus Shares
- 1.1.3 NMDC’s Q2 Financial Performance and Authorized Share Capital Increase
- 1.1.4 Conclusion:
- 1.1.5 FAQs:
- 1.1.5.1 1.What is the bonus issue ratio approved by NMDC?
- 1.1.5.2 2.Do shareholders need to pay for NMDC’s bonus shares?
- 1.1.5.3 3.Who qualifies for the NMDC bonus shares?
- 1.1.5.4 4.What is the face value of NMDC’s bonus shares?
- 1.1.5.5 5.Why does NMDC issue bonus shares?
- 1.1.5.6 6.How did NMDC perform financially in Q2 FY25?
- 1.1.5.7 7.What is the significance of increasing NMDC’s authorized share capital?
- 1.1.5.8 8.What rights do NMDC’s bonus shares carry?
- 1.1.5.9 9.When will the NMDC bonus shares be issued?
- 1.1.5.10 10.How did NMDC shares perform after the bonus announcement?
- 1.2 NMDC share price
- 1.3 Understanding the Structure of ETFs vs. Mutual Funds: A Complete Guide
- 1.1 NMDC Declares 2:1 Bonus Share Issue Amid Robust Q2 Performance
NMDC Ltd has announced a bonus issue, offering existing shareholders two fully paid bonus shares for every one share they currently hold. This 2:1 bonus share issuance will be provided at no additional cost to the shareholders, in line with NMDC’s aim to enhance stock liquidity and make shares more affordable for new and existing investors. As per the company’s recent filing, the bonus shares will carry the same rights as existing shares, including full participation in dividends and other corporate benefits.
The board-approved bonus share distribution means that for every share held, investors will receive two additional shares, each with a face value of ₹1. The record date for this bonus issue will be announced soon, with shareholders on record as of that date eligible to receive the bonus shares.
Issuing bonus shares is a strategic decision to make NMDC’s stock more accessible and improve its liquidity in the stock market. By increasing the total number of outstanding shares, NMDC also aligns with investor interests by making share prices more attractive to a broader investor base.
All NMDC shareholders who own shares before the officially declared record date will qualify for the 2:1 bonus share distribution. This bonus will be added directly to the shareholder’s account without incurring additional costs, offering a valuable benefit to loyal investors.
Alongside the bonus issue announcement, NMDC released its Q2 FY25 results, showing a strong financial performance. The company reported a 23% year-on-year (YoY) growth in standalone net profit, reaching ₹1,269 crore, while revenue from operations rose by 20% to ₹4,807 crore.
In addition to the bonus share issuance, NMDC’s board has also approved an increase in the company’s authorized share capital. The new authorized capital will be ₹1,000 crore, divided into 1,000 crore equity shares, providing greater flexibility for future financial operations and shareholder returns.
On the NSE, NMDC shares closed slightly lower by 1.05% at ₹233.5 on Monday, post the bonus announcement.
Conclusion:
NMDC’s 2:1 bonus share issue reflects its commitment to enhancing shareholder value while improving stock liquidity. Combined with strong Q2 financial results and an increase in authorized share capital, this bonus issue underscores NMDC’s solid financial position and growth strategy. NMDC share price, As the company continues to perform well, investors can anticipate steady returns and enhanced portfolio value.
FAQs:
1.What is the bonus issue ratio approved by NMDC?
A. NMDC has approved a 2:1 bonus issue, giving shareholders two additional shares for every share they own.
A. No, NMDC’s bonus shares are fully paid and are issued to shareholders at no additional cost.
A. Shareholders on record as of the declared record date will qualify for the bonus shares.
A. Each bonus share issued will have a face value of ₹1.
A. Bonus shares increase stock liquidity, making shares more affordable and accessible to investors.
6.How did NMDC perform financially in Q2 FY25?
A. NMDC reported a 23% YoY increase in net profit, reaching ₹1,269 crore, and a 20% YoY increase in revenue to ₹4,807 crore.
A. The increase to ₹1,000 crore allows NMDC greater flexibility for future expansions and shareholder benefits.
A. The bonus shares carry the same rights as existing shares, including participation in dividends and corporate actions.
A. The issuance date will be finalized after the record date announcement, which will be communicated soon.
A. NMDC shares closed 1.05% lower at ₹233.5 on the NSE following the announcement.
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