Government-owned Bharat Electronics (BEL) on record date for the bonus issue of its equity shares, which it had recommended in the ratio of 2:1, is Friday, September 16, 2022, this week and the stock trades ex-bonus. will start. Thursday the day before the record date.
Last month, PSU Bharat Electronics announced a bonus issue of equity shares in the ratio of 2:1, which means an investor will receive two bonus equity shares for every equity share held in the company. The Board of Directors of the company decided to issue bonus share by over-capitalizing the shareholders 487 crores.
“We would like to inform you that the Company has fixed Friday, 16th September, 2022 as the record date so that eligible shareholders will be entitled to receive the Bonus Shares approved at the 68th Annual General Meeting (AGM) of the Company held on 30th August. 2022,” BEL said in a regulatory filing earlier this month. Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
led by the government, Bharat Electronics Manufactures advanced electronic products primarily for ground and aerospace applications. The company has been accorded Navratna status by the Government of India. Shares of BEL are up over 72% in the one-year period, while the PSU defense stock is up nearly 55% in year-on-year or YTD terms, compared to a nearly one per cent decline in the benchmark BSE Sensex.
For the first quarter ended June 2022 (Q1 FY23), the company’s standalone net profit increased to Rs. 431 crore as against 11 crore recorded in the same period last year. Standalone turnover for the period was 3,063.5 crore against 1,564 crore in the same quarter last year. As on June 30, 2022, the order book position of the company is approx. 55,333 crores.
“BEL’s investment in R&D and increasing localization across large platforms will enhance value-addition, cost competitiveness and support gross-margin expansion. Lean cost structure along with improving operating profitability and NWC cycle will help improve RoE/RoCE to 24%/31% by FY25ii; Maintaining strong FCF and cash chest,” brokerage IIFL said in a note earlier this month.
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