This large-cap defence stock has announced 2 bonus shares for 1 share held on August 4

Do you own this multibagger stock that has given 190 per cent returns in just 2 years?

Bharat Electronics Ltd (BEL), a Navratna PSU under the Ministry of Defence and India’s leading aerospace and defence electronics company has approved the issue of bonus shares to the shareholders of the company in the ratio of 2:1 (Two bonus equity shares for every one equity share held) by capitalizing Rs 487.31 crore from free reserves and surplus of the company in its board meeting. 

The company’s board has also approved the increase in Authorised share capital from Rs 250 crore to Rs 750 crore to this effect by altering its Memorandum of Association 

The above is subject to the approval of the Shareholders of the Company in the AGM scheduled to be held on August 30, 2022. 

On the back of this announcement, the shares of BEL have rallied 4 per cent touching an intra-day high of Rs 287.65. 

The shares of BEL have rallied 25 per cent in the last one month on the back of strong Q1 financial numbers and robust order pipeline and a proposed bonus issue.  

As against BEL’s stellar performance on the bourses gaining 61 per cent in the last 1 year and 190 per cent in last 2 years, the benchmark index Sensex has delivered 8.4 per cent in 1 year and 58 per cent in 2 years. 

At the closing bell, shares of BEL were quoting at Rs 284.10 with a gain of Rs 7.4 or 2.67 per cent per share. The shares of BEL have logged a 52-week high and low of Rs 287.75 and 162.40, respectively.