Power Mech Projects jumped 8.73% to Rs 6,942 after the company said that its board has decided to issue one bonus share for every one equity share held (1:1).
In a regulatory filing, the company said, The board of directors has decided to issue bonus shares in the ratio of 1:1 i.e. one share for every one equity share of Rs 10 each fully paid up, subject to the approval of shareholders at ensuing 25th annual general meeting which is scheduled to be held on 27 September 2024.
The record date has been fixed as 28 September 2024 to determine the eligibility of the shareholders who are entitled for receipt of bonus shares.
The bonus shares shall rank pari passu in all respects and carry the same rights as the existing equity shares of the company.
A total sum of Rs 1.58 crore would be capitalized from the securities premium for implementation of this bonus issue.
The balance in the free reserves and securities premium account as of 31 March 2024 stood at Rs 1,791.27 crore.
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The said bonus shares would be credited within 2 months from the date of approval of board of directors, which is on or before 21 October 2024.
Meanwhile, the companys board approved an increase in authorised share capital of the company from Rs 26 crore comprising of 2.60 crore equity shares of a face value of Rs 10 each to Rs 35 crore divided into 3.50 crore equity shares of Rs 10 each by creating additional 90 lakh equity shares of Rs 10 each and consequent alteration of capital clause of the memorandum of association of the company.
Power Mech Projects is an engineering and construction company providing integrated service in erection, testing and commissioning (ETC) of boilers, turbines and generators and balance of plant (BOP), civil works and operation and maintenance (O&M).
The company had reported 17.93% rise in consolidated net profit to Rs 60.13 crore on a 16.44% increase in sales to Rs 1,007.39 crore in Q1 FY25 over Q1 FY24.
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