Promoter Group of Gujarat-Based Company Acquires Another 1,06,500 shares from Open Market After 1:1 Bonus Issue

The stock has given 36.91 per cent returns in the last one year.

Promoter Group of BigBloc Construction Ltd acquired another 1,06,500 equity shares of the company from open market. Promoter Group holding in the company as on date has increased to 72.59 per cent in the company holding 10,27,72,512 equity shares.

Earlier in the month of September 2024 also promoter group had acquired 1.34 lakh equity shares from the open market. Promoter group has been gradually increasing their stake in the company from 69.32 per cent on March 2020 to over 72.50 per cent in November 2024.

During Annual General Meeting held on August 29, 2024, the company approved issue of bonus equity shares in the ratio of 1:1. Company also approved final dividend – 20 per cent - Rs 0.40 per equity share for the financial year ended March 2024 along with the proposal of increasing the authorised share capital of the company from Rs 15 crore to Rs 30 crore divided into 15 crore Equity Shares of Rs 2 each. Like the previous years, promoter group have continued to waive their rights for final dividend announced for the FY 2023-24 as well to support business expansion plans.

Narayan Sitaram Saboo (HUF), belonging to Promoter group of the company acquired total 1,01,500 equity shares from the open market, 61,500 equity shares on Nov 18, 2024 and 40,000 equity shares on Nov 19, 2024. Post this acquisition, shareholding of Narayan Sitaram Saboo (HUF) in the company has increased to 3.52 per cent. Mrs. Madhu Narayan Saboo, also belonging to Promoter group of Bigbloc Construction Ltd intimated that she has acquired 5,000 Equity Shares of the Company form open market on dated November 19, 2024. She holds 5.75 per cent in the company.

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space with an installed capacity of 1.3 million cbm per annum. Company’s manufacturing plants are located in Kheda, Umargaon (Vapi), Kapadvanj (Ahmedabad) in Gujarat and Wada (Palghar) in Maharashtra. Company’s facility in Kheda is uniquely equipped to manufacture both AAC blocks and the innovative AAC wall. It is among very few companies in AAC industry to generate carbon credits.

The Company has reported robust 3-year Revenue CAGR of 33% and EBITDA CAGR of 66 per cent along with healthy Return on Capital Employed of 21.38 per cent, Return on Equity of 28.27 per cent and Debt Equity of 1.1 times.

Highlights: - H1FY25 Results

• Bigbloc Building Elements Pvt Ltd, wholly owned subsidiary of the company has announced completion of phase 2 expansion of their AAC Blocks manufacturing plant located at Wada, Maharashtra. With this expansion, the company has doubled its manufacturing capacity from 250,000 to 500,000 cubic meters per annum thereby establishing BigBloc Constructions Limited as the one of the largest AAC block manufacturer in India. Additionally, 625 KW of solar rooftop at the Wada plant is also commissioned alongside the expansion.

• SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between BigBloc Construction Ltd and Thailand's SCG International, launched its India operations with a Rs. 65 crore investment in Kheda, Gujarat. The company has inaugurated India’s first AAC Wall Plant, producing large-format AAC Wall products (8-12 feet long, 2 feet wide, and 3-8 inches thick). The plant has an initial capacity of 2.5 lakh cubic meters per year with plans to double capacity in the next phase. Company has launched products under the brand name "ZMARTBUILD WALL by NXTBLOC". BigBloc Construction holds 52% in the joint venture company.
• BigBloc Constructions Ltd is advancing its Green Initiative by expanding solar capacity to foster sustainability and reduce its carbon footprint. Previously, it installed rooftop solar projects of 700 KW at the Umargaon plant and 625 KW at Wada. With a new order for an additional 2150 KW, the company's total solar capacity will soon reach approximately 3475 KW across all facilities, supporting its commitment to a greener future.
• Bigbloc Construction Limited's move into manufacturing construction chemicals is a strategic expansion that could position the company as a key player in the growing construction materials market. With products like Block Jointing Mortar, Ready Mix Plaster, and Tile Adhesives, the company is tapping into high-demand sectors within the construction industry.

India is the second largest block manufacturer in the World after China and AAC market in the country is expected to grow rapidly going forward. Sustainable and non-toxic building construction material, AAC blocks and AAC Walls are lightweight, soundproof, and fire resistant, offer superior build quality, eco-friendly and economical too compared to traditional bricks.

Bigbloc Construction Limited was incorporated in 2015. The company is primarily engaged in manufacture, sale and marketing of AAC (Aerated Autoclaved Concrete) Blocks. These AAC Blocks of the company are marketed in the Brand name of NXTBLOC. The company has its headquarters in Surat.

The shares of the company are trading at Rs 105 with a market cap of Rs 1,484 crore. The stock has given 36.91 per cent returns in the last one year.

Investors should keep this Small-Cap stock on the radar.

Disclaimer: The article is for informational purposes only and not investment advice.