1700 per cent return: This company’s majority promoter group entities waive off their dividend rights for ongoing expansion plans!
The shares of the company have generated an impressive return of 666 per cent return in the last two years
BigBloc Construction Limited, a major Aerated Autoclaved Concrete (AAC) blocks, bricks, and panels manufacturer in India, will not distribute FY23 dividends to its promoter group and related entities, which prioritize company expansion company informed in its latest exchange filing. Moreover, the company has declared that other shareholders may receive dividends pending approval at the Annual General Meeting.
Entities within the promoter group, owning 60.03 per cent of the company's equity shares (out of the total 72.27 per cent held by the promoter group), have chosen not to claim dividends for FY23.
The company's Board of Directors, in a meeting on May 24, 2023, proposed a final dividend of Rs 0.40 per equity share of Rs. 2 each (20 per cent rate) for FY 2022-23, pending shareholders' approval at the AGM.
In a joint venture with Thailand’s SCG Group, the company is establishing a plant with a capacity of 3 lakh CBM per annum for ALC Panels and AAC Blocks in Kapadvanj, Ahmedabad (Gujarat). The company is also expected to commence work on Phase 2 of the Wada Project in Palghar, Maharashtra in the current financial year. Additionally, the company has installed solar rooftop projects at its Umargam unit and will be installing them at the Kapadvanj manufacturing facilities to minimize carbon footprints.
Providing further information, Mr. Narayan Saboo, the Chairman of Bigbloc Construction Ltd., stated, "Considering the funds needed for our ongoing expansion plans, the majority of the promoter group entities have chosen to relinquish their dividend rights that were announced for FY 2022-23. The company is making good progress on its long-term growth roadmap with the goal of attaining a leadership position in the AAC block sector. We anticipate a robust growth momentum and aim for a 20-25 per cent increase in sales for FY24.
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The joint venture company, M/s. SIAM Cement Big Bloc Construction Technologies Pvt Ltd has acquired 60,000 sq mtrs of land for the Kapadvanj plant, finalized banking tie-ups for financing, and placed orders for the supply of Machinery and Technical Services for the project. The plant is expected to commence commercial production in FY 2023-24.
The company's shares concluded on Tuesday at Rs 166.30 each on the BSE, while they opened at Rs 167 on the BSE.
The shares of the company have generated an impressive return of 666 per cent return in the last two years and an impressive 1731 per cent return in just three years.