1:2 Bonus Shares: 2 Days Left For Record Date On 7th October; Right Time To Buy Navratna PSU Stock?

Formerly known as National Buildings Construction Corporation, NBCC (India) Limited is a public sector undertaking company that is under the authority of the Indian government's Ministry of Housing and Urban Affairs. NBCC was established in 1960 and is a Central Public Sector Enterprise (CPSE) under the Housing and Urban Affairs (MoHUA) Ministry. NBCC, which has its headquarters in Delhi, is currently recognised as a Navratna CPSE. With a market valuation of Rs 30,429 Cr, NBCC (India)'s shares ended Friday's trading session on the BSE 0.94% down at Rs 169.05 a share.

NBCC Bonus Shares

"Further, as on March 31, 2024, total reserves & surplus of the Company is Rs 1,959.00 crore (Rupees one thousand nine hundred fifty nine crore). With a view to rationalize the capital structure, Board of Directors in its meeting held on August 31, 2024 have proposed to issue bonus shares at the ratio of 1:2 [i.e. 1(one) fully paid up equity shares of Rs 1 each for every 2(Two) existing fully paid up equity shares of Rs 1 each held] to the shareholders appearing in the Register of Members as on the Record Date i.e. Monday, October 7, 2024. The new equity bonus shares to be allotted and issued shall be subject to the terms of Memorandum & Articles of Association of the Company and shall rank pari passu in all respects with the existing fully paid equity shares of the Company," said the PSU company in a stock exchange filing.

NBCC 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," said NBCC in a report.

NBCC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "NBCC is currently trading in the Rs 170-172 range and is exhibiting a sideways trend, with recent consolidation suggesting potential short-term weakness. The key resistance level to watch is Rs 178. A breakout above this level could lead to a short-term target of Rs 190. On the downside, Rs 167 acts as immediate support, which may present buying opportunities."

"The Relative Strength Index (RSI) is currently at 46.55 and trending upward, indicating growing buying momentum. For effective risk management, a stop-loss at Rs 163 is advisable to protect against any unexpected market reversals. In summary, based on technical analysis and current market conditions, NBCC offers a compelling buying opportunity with a potential target of Rs 190, provided appropriate risk management strategies are implemented," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.