1:3 Bonus Issue: Maharatna Power Stock Below Rs 300 To Trade Ex-Bonus Soon; Find Out!

Indian central public sector undertaking, Power Grid share price will be in focus next week as the stock will turn ex-bonus on September 12. The company will issue bonus shares in the ratio of 1:3 to eligible shareholders. Power Grid, is a Schedule 'A', 'Maharatna' Public Sector Enterprise of the Government of India.

As per the regulatory filing, Power Grid fixed 12th September 2023 as the record date for the purpose of ascertaining the eligibility of members entitled to issuance of Bonus Shares in the ratio of 1:3.

Simply put, the company will issue one bonus equity share having a face value of Rs 10 for every three existing equity shares having a face value of Rs 10 fully paid up. The estimated date by which Bonus Shares shall be credited/dispatched is September 25, 2023.

The company will determine eligible shareholders on September 12, and hence, this PSU stock will trade ex-bonus on this day.

Bonus shares are issued in a certain proportion only to the existing shareholders free of cost. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

On BSE, Power Grid shares ended at Rs 258.75 apiece, up by 0.7% on September 8. So far in 2023, the stock gained by over 20%.

In the annual report for FY23, K. Sreekant, Chairman & Managing Director of Power Grid said, "Looking ahead, the commitment of our country to achieve 50% of electricity generation capacity through Non-Fossil sources by 2030 and the growing share of electricity in the overall energy mix would require significant investments in the transmission network, both at inter-state and intra-state levels. This would be further bolstered by the growing interest in Green Hydrogen and the plans to make India a leading exporter of Green Hydrogen. A number of transmission projects are expected to be offered for bidding over the next 12 months and your Company is well poised to grow its market share in this segment."

Further, he said, "Your Company has a pivotal role to play in our country's energy transition journey, for the large-scale integration of renewables will require a strong, flexible, and resilient grid. I am confident that with its vast experience, committed and skilled manpower, and financial strength, your Company will continue to remain a leader in the Indian transmission sector and make a significant contribution towards India's energy transition. To reduce the carbon footprint, your Company is committed to sourcing 50% of its energy from renewable sources by 2025, turning water positive by 2030, and becoming a net zero company by 2047."

Power Grid is mainly engaged in the business of transmission of power through its HVAC/HVDC transmission network. The company has diversified into the telecom business by leveraging its Pan India transmission network through the stringing of optical ground wire(OPGW).

The company has also announced a fundraising of up to Rs 12,000 crore from the domestic market through the issue of secured/unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable/tax-free Debentures/Bonds under Private Placement during the Financial Year 2024-25 in one or more tranches/offers subject to the approval of shareholders of the company.

During the June 2023 quarter, Power Grid posted revenue from operations of Rs 11,048.13 crore, rising from Rs 10,905.21 crore in Q1FY23. Profit for the period came in at Rs 3,597.16 crore, however, down from Rs 3,801.29 crore in Q1 of FY23.