NALCO approves Stock-Split, issues shares
For the first time National Aluminium Company Limited (NALCO), the Navratna PSU, has decided to go for capital restructuring by splitting the equity share of Rs 10 into two equity shares of Rs 5 each.
The Company approved 1:1 bonus, that is one bonus share for each share held. The decision was endorsed in an extraordinary general meeting of its shareholders held recently. "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," says B.L. Bagra, Director (Finance) cum CMD I/c of NALCO.
"This is also expected to increase the total market capitalization and enhance value to the shareholders," Bagra added. NALCO's paid-up capital of Rs 644.31 crore now stands enhanced to Rs 1288.62 crore.