What drove Power Mech Projects stock price 6% higher on August 23?

The uptick in share price came after the board of the company fixed September 28 as the 'Record Date' to determine the eligibility of shareholders who are entitled for receipt of Bonus shares.

Power Mech stock rises: Shares of Power Mech Projects zoomed as much as 5.85 per cent to hit an intraday high of Rs 6,758.50 per share on Friday, August 23, 2024.

The uptick in share price came after the board of the company fixed September 28 as the  ‘Record Date’ to determine the eligibility of shareholders/Beneficial Owners who are entitled for receipt of Bonus shares.

In an exchange filing, Power Mech said, “The Board has approved fixation of Saturday, September 28, 2024 as Record date to determine the eligibility of shareholders/Beneficial Owners who are entitled for receipt of Bonus shares, subject to approval of Bonus Issue by the shareholders at the ensuing AGM.”

On August 22, the Board decided to issue bonus shares in the ratio of 1:1 ie. one share for every one equity share of Rs 10 each fully paid up subject to the approval of shareholders.

The Board has also approved fixation of September 28, 2024 as Record date to determine the eligibility of shareholders/Beneficial Owners who are entitled for receipt of final dividend.

Set up in 1999, Power Mech Projects Limited is among the leading engineering and construction firms specialising in the integrated services of erection, testing, and commissioning (ETC) for boilers, turbines, generators, and balance of plant (BOP). 

Additionally, the company offers civil works and operation and maintenance (O&M) services. Power Mech Projects is involved in major power initiatives, including ultra-mega power projects, supercritical thermal power projects, and subcritical power projects.

The company operates through five strategic units including Industrial Services, Industrial Construction, Infrastructure Construction, Manufacturing & Heavy Fabrication, and Mining.

As of FY24, Power Mech Projects boasts a strong order book valued at approximately Rs 57,000 crore, which includes two Mine Developer and Operator (MDO) contracts worth around Rs 39,700 crore, set to be executed over the next 25 years.

The market capitalisation of Power Mech is Rs 10,669.95 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE SmallCap category. 

At 9:46 AM, shares of Power Mech were trading 5.41 per cent higher at Rs 6,730.60 per share. In comparison, BSE Sensex was trading 0.14 per cent lower at 80,938.29 levels.