Shares of KNR Constructions in intra-day trade on Tuesday zoomed 19% to hit a record high of Rs. 481 per share on the NSE ahead of its bonus share issue. The company will issue bonus shares in the ratio of 1:1, implying one bonus share for every single share held in the firm.
For the proposed bonus share issue, the Executive Finance Committee of the company has fixed February 4 as the record date. The stock will turn ex-date for bonus issue on February 3.
Since the announcement of the bonus issue in mid-December, the scrip of construction and engineering major has moved higher by over 50% from Rs. 318 to levels of Rs. 481.
Meanwhile, on the proposed national highway project in poll-bound Tamil Nadu, West Bengal, Assam and Kerala in the Union Budget 2021, companies engaged in road and highways construction continued to rally for the second straight day.
In her budget speech, the FM said, "National highway works of 3,500 km for Rs 1.03 trillion will be undertaken in Tamil Nadu, 1,100 km projects for Rs 65,000 crore in the state of Kerala, 675 km for Rs 25,000 crore in West Bengal and Rs 34,000 crore worth of projects in Assam in the next three years."
As per brokerage firm Motilal Oswal, the company's healthy balance sheet situation provides it an edge over competitors in bidding for new projects as well as in respect of strong execution despite financing challenges in the sector as the dependency on bank financing is minimal.
Last at around 12:50 pm, the scrip traded higher by 8.8% at Rs. 440.35 per share.