State-owned New India Assurance Co Ltd today said it plans to issue bonus shares to shareholders in 1:1 ratio, meaning one additional share for each share held by a member.
In a postal ballot notice to shareholders for passing a resolution to the same, the company has sought approval for the issue of bonus shares by increasing the issued, subscribed and paid up share capital of the company.
Also, the company will increase the authorised share capital from Rs 600 crore to Rs 1,000 crore, it said in a regulatory filing.
The board of directors on May 11 had approved the bonus share issue subject to approval of shareholders.
Stock of New India Assurance closed 1.03 per cent up at Rs 670.80 on BSE.