NALCO approves stock split, issues bonus shares
State-run National Aluminium Company Limited (NALCO) on Saturday said it had decided to go for capital restructuring by splitting an equity share of Rs.10 into two equity shares of Rs5 each.business Updated: Mar 05, 2011 17:17 IST
State-run National Aluminium Company Limited (NALCO) on Saturday said it had decided to go for capital restructuring by splitting an equity share of Rs.10 into two equity shares of Rs5 each.
In a statement issued here, the company said it had approved a 1:1 bonus, which is one bonus share for each share held. The decision was endorsed in an extraordinary general meeting of its shareholders held here Saturday.
“By enhancing the number of shares and reducing the price for each share, the float and liquidity of the share shall be enhanced in stock exchanges,” NALCO’s director (finance) and chairman cum managing director in charge B.L. Bagra said.
“This is also expected to increase the total market capitalisation and enhance value to the shareholders,” Bagra added.
NALCO’s paid-up capital of Rs644.31 crore now stands enhanced to Rs1,288.62 crore, without any cash consideration.
The Bhubaneswar-headquartered company, Asia's largest integrated aluminium producer, has also decided to issue an employees stock ownership plan (ESOP), that is shares meant for its employees.
The ESOP is planned to be issued to the executives of the company as part payment of dues to them under performance related payment (PRP), a component of revised pay package.
The detailed scheme of the ESOP, including price, is yet to be finalised, the statement added.