1:1 Bonus First-Ever Announced by Gujarat-Based Stock: Promoters Waive Their Dividend for Expansion – Don’t Miss Action in This Stock!
Notably, the Promoter Group, which holds 60.18 per cent of the company's shares, has waived its dividend for FY2023-24 to support the company's upcoming expansion plans.
The NSE benchmark Nifty50 index continued its remarkable performance, recording its 12th consecutive winning session on Friday, marking the longest rally since its inception in 1996. Alongside this market milestone, BigBloc Construction Limited has made history by announcing a 1:1 bonus issue for the first time ever.
BigBloc Construction Limited is one of India’s largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels. During its Annual General Meeting on August 29, 2024, the company approved the issuance of bonus equity shares in the ratio of 1:1, meaning one bonus share of Rs. 2 each for every existing share of the same value held by shareholders as of the record date. This strategic move aims to reward existing shareholders, improve liquidity, and broaden the shareholder base.
In addition to the bonus issue, the company also declared a final dividend of 20 per cent or Rs. 0.40 per equity share for the financial year ending March 2024. The AGM also approved the increase in the authorized share capital of the company from Rs. 15 crore to Rs. 30 crore, divided into 15 crore equity shares of Rs. 2 each. Subject to necessary regulatory approvals, the bonus shares are expected to be credited by September 18, 2024. The record date for the final dividend is set for July 26, 2024. Notably, the Promoter Group, which holds 60.18 per cent of the company's shares, has waived its dividend for FY2023-24 to support the company's upcoming expansion plans.
For FY24, BigBloc Construction reported a consolidated net profit of Rs. 30.69 crore, with revenue from operations at Rs. 243.22 crore, reflecting a 21.55 per cent year-on-year increase from Rs. 200.11 crore in FY23. The company’s EBITDA rose by 12.29 per cent to Rs. 56.15 crore compared to Rs. 50.01 crore in the previous year. Over the last five years, BigBloc has demonstrated a solid operational and financial performance with a compound annual growth rate (CAGR) of 19 per cent in sales and over 80 per cent in net profit.
Mr. Narayan Saboo, Chairman of BigBloc Construction Ltd, expressed confidence in the company’s future, stating, “Our Company is set to bring major transformation in the AAC Block industry. Further to reward our loyal shareholders and boost liquidity, the board has recommended a bonus issue. This move will enhance our equity base and support continued growth. We anticipate sustained momentum and look forward to further achievements in the coming years.”
Founded in 2015, BigBloc Construction Ltd is the only listed company in the AAC block space and operates four manufacturing plants: one in Umargaon, Gujarat; a second in Wada, Maharashtra; and two more in Kapadvanj, Gujarat. The latest plant is uniquely designed to produce both AAC blocks and AAC walls. With this joint venture, the company’s total capacity has reached 1.3 million cubic meters per annum. Remarkably, BigBloc is among the few companies in the AAC industry that generate carbon credits, emphasizing its commitment to sustainability.
AAC blocks and AAC walls, marketed under the brand name 'NXTBLOC,' are lightweight, soundproof, fire-resistant, and eco-friendly, providing a superior, economical alternative to traditional bricks. The company has completed over 2,000 projects and has more than 1,500 in the pipeline. Its clientele includes major real estate developers like Lodha, Adani Realty, IndiaBulls Real Estate, Prestige, Piramal, Oberoi Realty, and L&T, among others.
Disclaimer: The article is for informational purposes only and not investment advice.