1:3 Bonus Issue: PSU Power Sector Stock Slips Over 5% Intraday As Net Profit Dips 5% YoY

Leading state-owned company, Power Grid Corporation Of India shares declined over 5% intraday on Tuesday after the company announced 5% YoY dip in consolidated net profit to Rs 3597 crore for the June quarter as against Rs 3801 declared in the year ago period. Current market price of Power Grid Corporation share is Rs 251.30 per share on BSE. Power Grid Corporation also announced bonus share in the proportion of 1:3 on Monday. Check details below:

Power Grid Corporation Recommends Bonus Share: As per the BSE filing of Power Grid dated July 31, 2023, "Recommended issue of Bonus Shares in the ratio of 1:3 i.e. 1 (one) new equity Bonus Share of Rs. 10/- each for every 3 (three) existing equity share of Rs.10/- each fully paid up, subject to approval of the Shareholders of the Company in the ensuing Annual General Meeting. The estimated date by which Bonus Shares shall be credited/dispatched is 25th September, 2023."

Power Grid To Raise Up To Rs 12,000 Crore: Power Grid Corporation also announced its plans to raise funds up to Rs 12,000 crore from domestic market through 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."

Power Grid Stock Performance & Return: Current market price of Power Grid share on BSE is Rs 251.30 per share with intraday fall of 5.53%. Its 52-week high price is Rs 263.65 per share and 52-week low price is Rs 186.35 per share, respectively. It has a market capitalisation of Rs 1,75,293.13 crore. Power Grid shares offered 4% return in last 2-weeks, surged 16% in last 6-months, rallied 15% in last 1-year, gave return of 47% in last 2-years, and soared 87% in last 3-years.

Power Grid Q1 Results: The company's revenue from operations surged marginally by 1% to Rs 11,048 crore as compared to Rs 10,905 crore in the last quarter. Meanwhile, revenue from operations during the 1st quarter surged by 1% to Rs 10,829 crore. On a sequential basis, Power Grid's net profit declined 17% from Rs 4323 crore announced in the last March quarter.

Consolidated EBITDA surged 5% YoY for the June quarter to Rs 9,682 crore as margins declared at 87.6% in the same period.

Power Grid About: Power Grid Corporation of India Limited (POWERGRID), is a Schedule 'A', 'Maharatna' Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Company Act, 1956. POWERGRID is a listed Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public, according to its official website.

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