Inox Wind bonus issue plan: Board meet on April 25; stock zooms 9%

Wind energy manufacturer Inox Wind shares jumped as much as 8.93 per cent to hit an intraday high of Rs 645.75 apiece, on Tuesday. 

This comes after the company announced that its board of directors will meet on April 25, to consider and approve the proposal for issuance of bonus equity shares to the shareholders of the company.

S&P BSE SmallCap index, on the other hand, was trading 0.98 per cent higher at 46,460.59 levels.

In an exchange filing, Inox Wind said, “We would like to inform you that a meeting of the Board of Directors of the company is scheduled to be held on Thursday, April 25, 2024, inter-alia, to consider and approve the proposal for issuance of bonus equity shares to the shareholders of the company.”

 

What is a bonus issue?

A bonus issue is a proposition extended to current shareholders, inviting them to acquire additional shares. Rather than augmenting dividend payouts, companies opt to distribute extra shares among shareholders. For instance, a company might decide to grant one bonus share for every ten shares held.

Last week, Inox Wind announced that it has bagged an order for the supply of 210 MW of Wind Turbine Generators (WTGs) from Hero Future Energies (HFE). The company will also provide post commissioning multi-year operations & maintenance (O&M) services. The WTGs will be supplied to HFE from Q3FY25 onwards and will be installed in South India, the company said. 

The market capitalisation of the company stands at Rs 19.328.75 crore, according to BSE

Notably, Inox Wind shares have jumped 7.70 per cent in the last five trading sessions and 17.25 per cent in the past month. 

As of 1:01 PM, Inox Wind shares were trading marginally higher at Rs 593.30 apiece.