Bharat Electronics bonus share: State-owned Bharat Electronics Limited (BEL) on Thursday announced a bonus issue of equity shares in the ratio of 2:1. This means investors of BEL will receive two bonus equity shares for every one equity share held of the company.
The company’s board of directors in a meeting held today decided the issuance of bonus shares to the shareholders by capitalizing nearly Rs 487.32 crore. BEL share price closed at Rs 284.1 per share, up over 2.5 per cent, which is near to its 52-week high of Rs 287.75 per share hit on August 1.
The record date for the bonus issue will be announced later by the company.
According to the exchange filing of BEL, “Issue of Bonus shares to the Shareholders of the Company in the ratio of 2:1 (Two bonus equity shares for every One equity share held) by capitalizing Rs 4,87,31,85,886 standing to the credit of the free reserves and surplus of the company.”
BEL also in a filing said that the bonus issue is subject to approval from shareholders of the company at the 68th annual general meeting (AGM), which is slated to be held on August 30.
In its earlier filing on August 1, the company had informed exchanges about meeting on Thursday to consider the issue of bonus shares and the proposal was duly approved by the board.
The company said, “The proposal to increase authorized share capital, alteration of the memorandum of association of the company, and the issue of bonus shares as stated above is subject to the approval of the shareholders of the company in the AGM scheduled to be held on August 20, 2022.”
Further, the administrative ministry has accorded approval for an increase in authorised share capital from Rs 250 crore to Rs 750 crore, the regulatory filing added.
BEL share prices jumped over 2 per cent on Thursday on account of bonus issue to end at Rs 282.80 apiece on the NSE.