1.34 Lakh Shares Bought by Promoter: Gujarat-Based Company Sees Increased Promoter Interest After 1:1 Bonus Issue; Is Major Development on the Cards?

The company recently issued bonus equity shares in the ratio of 1:1, i.e., one bonus equity share of face value Rs. 2 for every existing equity share

The promoter group of Gujarat-based company BigBloc Construction Limited, one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) blocks, bricks, and panels in India, has acquired over 1.34 lakh equity shares of the company from the open market.

Mrs. Madhu Narayan Saboo, belonging to the promoter group of the company, acquired 89,594 equity shares on September 27, 2024, for Rs. 1.10 crore. The average acquisition price was Rs. 123.74 per share. Following this acquisition, her shareholding in the company has increased to 5.75 per cent, totaling 81,35,154 equity shares.

On September 30, 2024, Mr. Narayan Sitaram Saboo (HUF), also part of the promoter group, acquired 45,000 equity shares of the company for Rs. 54 lakh at an average price of Rs. 120 per share. Following this acquisition, his shareholding in the company has increased to 3.45 per cent, with a total of 48,84,530 equity shares.

The current boom in the construction sector, along with supportive government laws and regulations, has driven the growth of the AAC block market in India. The transition from traditional bricks to AAC blocks is gradually gaining momentum. In metropolitan areas, builders and leading developers are increasingly adopting AAC blocks, with usage exceeding 60-70 per cent. Demand in Tier II and industrial segments remains strong, while approximately 40 per cent of the market in Tier II cities has also shifted to AAC blocks. BigBloc Construction Limited is poised to bring significant transformation to the AAC block industry with high-quality building products. The company is also committed to environmental sustainability and has been implementing solar power plants across all its manufacturing facilities. Recently, the company placed an order for the installation of an additional 250-kilowatt (KW) rooftop solar plant, supplementing its existing 450 KW rooftop solar power project at the Umargaon (Vapi) unit. Additionally, the company has initiated a 625 KW rooftop solar project at its Wada plant in Palghar, Maharashtra, bringing its total installed solar capacity to 1.3 MW.

The company recently issued bonus equity shares in the ratio of 1:1, i.e., one bonus equity share of face value Rs. 2 for every existing equity share of Rs. 2 held by shareholders as of the record date, at the company's Annual General Meeting (AGM). The bonus issue aimed to reward existing shareholders, enhance liquidity, and expand the shareholder base. The company also approved a proposal to increase the authorized share capital from Rs. 15 crore to Rs. 30 crore, divided into 15 crore equity shares of Rs. 2 each at the AGM.

For FY24, the company reported a consolidated net profit of Rs. 30.69 crore. Revenue from operations during FY24 stood at Rs. 243.22 crore, representing a rise of 21.55 per cent year-over-year (YoY) compared to operational revenue of Rs. 200.11 crore in FY23. EBITDA for FY24 stood at Rs. 56.15 crore, reflecting a rise of 12.29 per cent compared to Rs. 50.01 crore in FY23. The company has demonstrated strong operational and financial performance, with a 5-year compound annual growth rate (CAGR) of 19 per cent in sales and over 80 per cent in net profit.

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and the only listed company in the AAC block space. BigBloc operates four AAC plants: one in Umargaon, District Valsad, Gujarat, another in Wada, Maharashtra, and a third in Kapadvanj, District Kheda, Gujarat. The new facility in Kheda is the company’s fourth plant and is uniquely equipped to manufacture both AAC blocks and the innovative AAC wall. With this joint venture, the company’s total capacity has increased to 1.3 million cubic meters (CBM) per annum. It is among the very few companies in the AAC industry to generate carbon credits.

AAC blocks and AAC walls, which are sustainable and non-toxic building materials, are lightweight, soundproof, and fire-resistant. They offer superior build quality, are eco-friendly, and are more economical compared to traditional bricks.

BigBloc Construction Limited is India’s leading AAC block manufacturing company. The company markets its products under the brand name 'NXTBLOC.' BigBloc has executed over 2,000 projects to date and has over 1,500 more in the pipeline. The company’s clients include prominent names such as Lodha, Adani Realty, IndiaBulls Real Estate, Prestige, Piramal, Oberoi Realty, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T, Sunteck, Sethia Infrastructure Pvt Ltd, Dosti Group, and Purvankara Ltd, among others.

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