1:1 Bonus Equity Shares: October 8 Record Date; Buy Apiece Share To Get 1 Free?

Based in Hyderabad, India, Power Mech Projects Limited is a prominent infrastructure-building company with a global reach. The company offers services to the infrastructure and power industries. With its main base of operations in India, Power Mech has expanded internationally and now operates in over 10 nations. In its more than 20 years of operation, the firm has unquestionably carved out a position for itself in the power-generating industry.

Power Mech Projects Bonus Shares

"We wish to inform you that the Company has revised the Record Date to Tuesday, October 8, 2024. This date has been fixed for determining the Members entitled to the allotment of bonus equity shares in the ratio of 1:1. Accordingly, 1 (One) new fully paid-up equity share of Rs. 10/- each will be issued for every 1 (One) fully paid-up equity share of Rs. 10/- each held by the Members," said Power Mech Projects in a stock exchange filing.

Power Mech Projects Bonus Shares Allotment

"The allotment of shares in bonus issue shall be made only in dematerialized form and thus, in case of Members who hold equity shares in dematerialized form, the bonus equity shares shall be credited to the respective beneficiary accounts of the Members with their respective Depository Participant(s) and in the case of Members who hold equity shares in physical form, the bonus equity shares shall be transferred to the Demat Suspense Account as per the SEBI Regulations and on receiving the details of demat account from the shareholders, such Bonus Shares shall be credited to the concerned demat account of the shareholders, as per SEBI Regulations," said Power Mech Projects in a statement.

Power Mech Projects Purpose of Issuing Bonus Shares

"In celebration of the company's 25th anniversary, the Board of Directors in their meeting held on 22 August, 2024 has recommended the capitalization of sum of Rs 15,80,81,460 (Rupees Fifteen Crore Eighty Lakhs Eighty One Thousand Four Hundred and Sixty Only) out of Securities Premium Account for issue and allotment of bonus equity shares in the proportion of one new bonus equity share of Rs 10 each for every one existing equity shares of Rs 10 each held by the Members on the Record Date i.e. 8 October, 2024. Accordingly, 1,58,08,146 equity shares of Rs 10 would be issued as fully paid up bonus shares to the shareholders of the Company. Consequently, the paid up equity share capital of the Company would increase to Rs 31,61,62,920 (Rupees Thirty One Crore Sixty One Lakhs Sixty Two Thousand and Nine Hundred and Twenty Only) consisting of 3,16,16,292 fully paid up equity shares of Rs 10 each. The bonus issue is intended to commemorate this significant milestone and strengthen our capital base, enabling us to enhance financial stability and support future growth," said Power Mech Projects in its FY24 annual report.

Power Mech Projects Share Price Target

"Power Mech Projects stock price is overbought and bearish on the Daily charts with strong resistance at 6772. Investors should be booking profits at current levels as a Daily close below support of 6300 could lead to a target of 5440 in the near term," predicted A R Ramachandran, Independent Research Analyst.

Disclaimer

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