GMDC: Bonus boost

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The stock gained 13 per cent from Rs 360.25 to Rs 406.60 in a falling market last week, after the company's board of directors recommended a bonus issue of shares in the ratio of 1:1.

The company had issued bonus shares thrice in the last 15 years to its shareholders. The current bonus issue is after a gap of 11 years. Earlier in 1996, the company had issued bonus shares in a ratio of 3:2 (three equity shares for every two equity share held).

Gujarat Mineral Development Corporation (GMDC) was established by the Gujarat government for developing important and major mineral resources of the state. The company's product range includes energy minerals such as bauxite, fluorspar, granite and marble.

The company has posted a 145 per cent jump in net profit to Rs 200.25 crore in the first nine months of 2007-08 compared with Rs 81.71 crore net profit in the year-ago. The company had posted Rs 105.26 crore net profit during the whole of 2006-07.