National Aluminium Company (Nalco) has decided to go for capital restructuring by splitting a share of Rs 10 into two shares of Rs 5 each, a senior company official said today.
The company, for the first time, approved 1:1 bonus, while taking into account the Q3 results in its board meeting held on January 31.
"By enhancing the number of shares and reducing the price for each share, the float and liquidity of the share shall be enhanced in stock exchanges," said B L Bagra, director (finance) of Nalco.
"This is also expected to increase the market capitalisation and value to the shareholders," he added.
Nalco's paid-up capital of Rs 644.31 crore would stand enhanced to Rs 1,288.62 crore, without any cash consideration, once the board's resolution is endorsed by the shareholders in a meeting likely to be convened in March 2011.
By amending the Article of Association, Nalco has created a provision for issue of ESOP (Employee Stock Owenership Plan), that is shares to its employees.
The ESOP is planned to be issued to the executives of the company as part payment of dues to them under performance related payment (PRP), a component of revised pay package. The detailed scheme of ESOP, including price, is yet to be finalised, Bagra clarified.
