3:1 Bonus Shares Declared 1st Ever: Shall Be Credited By December 02; A Profitable Buy?

Founded in 1961 and activated on the Bombay Stock Exchange, Bajaj Steel Industries Limited (Bajaj) is a public limited company based in Nagpur, India. In addition to general engineering fabrication, machining, intelligent electrical panel manufacturing, and various other engineering activities, Bajaj is engaged in producing machinery for all cotton ginning technologies, such as Double Roller, Saw Gin, and Rotobar, all pressing technologies, such as Down Packing, Up Packing, and Horizontal Packing, as well as Seed Cleaning, Delinting, and Decorticating.

Bajaj Steel Industries Bonus Shares

The Board of Directors of Bajaj Steel Industries Limited, Nagpur, at the Board Meeting held today i.e. October 03, 2024 considered and approved "Issuance of Bonus Shares in the ratio of 3:1 i.e. three (3) Equity Shares of face value of Rs.5/- each for every One (1) existing Equity Share of face value of Rs.5/- each held by the Shareholders of the Company as on Record Date," as per a stock exchange filing.

15600000 equity shares having a face value of Rs.5/- each is the total number of securities proposed to be issued or the total amount for which the securities will be issued (approximately) as a part of bonus shares by Bajaj Steel Industries.

The company's pre-bonus paid-up share capital comprises 5200000 equity shares of face value of Rs.5/- each aggregating to Rs.2,60,00,000/- whereas post-bonus paid-up share capital comprises 20800000 Equity Shares of face value of Rs.5/- each aggregating to Rs.10,40,00,000/-.

Bajaj Steel Industries said in a stock exchange filing that Rs.7,80,00,000/- would be capitalized from the securities premium account for implementing the bonus issue whereas as of March 31, 2024, the aggregate amount of the Securities Premium Account was Rs.8,91,00,000/-.

Bajaj Steel Industries Bonus Shares Payable Date

"Subject to obtaining the Shareholders approval and other Statutory/Regulatory approvals, as may be necessary, the Bonus Shares shall be credited to the respective demat account of the eligible Shareholders within two months from the date of the Board's approval i.e. on or before December 02, 2024," said Bajaj Steel Industries in a regulatory filing.

Bajaj Steel Industries Share Price Target

"Bajaj Steel Industries stock price is overbought and bearish on the Daily charts with strong resistance at 3506. Investors should be booking profits at current levels as a Daily close below support of 3225 could lead to a target of 2664 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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