Bajaj Steel hits 52-week high as board approves 3:1 bonus share issue

Bajaj Steel will allot three shares of Rs 5 face value each to shareholders for every one existing share they hold

Bajaj Steel Industries shares rose 4.4 per cent on Thursday and clocked a 52-week high at Rs 3,499.75 per share on the BSE after the company's board approved the proposal for a bonus share  issue in the ratio of 3:1.

At around 12:42 PM, shares of Bajaj Steel Industries were up 1.45 per cent at Rs 3,398.9 per share on the BSE. In comparison, the BSE Sensex was trading 1.53 per cent lower at 82,973.86 around the same time.

"The Board of Directors of Bajaj Steel Industries Limited, Nagpur, at the Board meeting held today, considered and approved the issuance of Bonus Shares in the ratio of 3:1," the company's exchange filing stated.

 

Under the bonus share arrangement, 3 shares of the face value of Rs 5 each will be allotted to each shareholder of the company for every one existing share they hold.

As per the exchange filing, 1.56 billion shares of face value Rs 5 will be issued by the company and after the issuance of the shares, the company's total shares will increase to 2.08 billion, aggregating to Rs 10,40,00,000.

Further, Rs 78 crore would be capitalised from the Securities Premium Account for implementing the bonus issue, the company said. As of March 31, the aggregate amount of the Securities Premium Account stood at Rs 8,91,00,000.

Apart from the bonus issue, Bajaj Steel Industries' board also approved the re-appointment of Dr. Mahendra Kumar Sharma as a whole time director and CEO of the company for the next five years, effective from November 12, 2024.

The appointment of Lav Bajaj as an additional executive director of the company for the next five years, effective from October 3, 2024, was also approved.

The board also approved the appointment of Gaurav Sarda as an additional non-executive independent director of the company for the next two years, effective from October 3, 2024.

Bajaj Steel Industries manufactures cotton ginning and pressing machineries, prefabricated building structure, components, and other allied products.

In the past one year, shares of Bajaj Steel Industries have gained 205.6 per cent, compared to the BSE Sensex's rise of 29 per cent during the same period.