IGL gains 2% as board approves bonus issue, increasing authorised capital

Indraprastha Gas (IGL) shares rose 2.2 per cent on BSE in Tuesday's trade. The stock gained after the company's board approved an increase in the authorised share capital and issuance of bonus shares.

 

A bonus issue refers to a corporate action in which a company issues additional shares to its existing shareholders without any cost. These new shares are issued in proportion to the shares already held by the shareholders. Essentially, it is a way for companies to distribute profits or reserves to shareholders in the form of additional equity rather than cash dividends.

 

Around 1:35 PM, IGL share price was up 1.65 per cent at Rs 392 per share on BSE. In comparison, BSE Sensex was down 0.28 per cent at 81,282.53. The market capitalisation of the company stood at Rs 27,447.03 crore. The 52-week high of the stock was at Rs 570.6 per share and 52-week low of the stock stood at Rs 306.5 per share.

 

 

The board has approved the issuance of bonus shares in the ratio of 1 :1. This means 1 bonus share of face value of Rs 2 each will be given for every 1  existing shares of face value of Rs 2 each fully paid up. 

 

For the bonus issue, 70,00,00,800 shares will be issued have a face value of Rs 2 each. Pre-bonus share capital will stand at Rs 140,00,01,600 divided into 70,00,00,800 shares of face value of Rs 2 each and post-bonus share capital will stand at Rs 280,00,03,200 divided into 140,00,01,600 shares of face value of Rs 2 each. 

 

The bonus will be issued within two months from the date of shares are credited which is on or before February 9, 2025.

 

Further, the company's board also approved increasing its authorised share capital from Rs 22 crore divided into 110 million shares of Rs 2 each; to Rs 1,000 crore divided into 5,000 million equity shares of Rs 2 each. 

 

IGL is a natural gas distribution company in India, primarily focused on the supply of compressed natural gas (CNG) and piped natural gas (PNG) to residential, industrial, and commercial consumers. Established in 1998 and headquartered in New Delhi, IGL is a joint venture between GAIL (India) Ltd., BPCL, and the Delhi Government.

 

In the past one year, IGL shares have lost 1.8 per cent against Sensex's rise of 16.5 per cent.