Small Cap stock engaged in the business of manufacturing, sale, and marketing of building blocks, aerated autoclaved concrete blocks, and many more jumped 7 percent in the day’s trade upon announcing a bonus issue of equity shares of the company and declaring a record date for final dividend.
Price Action
With a market capitalization of Rs. 1,951 Crores, the shares of Bigbloc Construction Limited were trading at Rs. 275.05 per equity share, up 3.32 percent from its previous day’s close price of Rs. 266.20.
Bonus Issue
The Board of Directors of Bigbloc Construction Limited has considered and approved issuing bonus equity shares of the company in the ratio of 1:1 where one equity share with a face value of Rs. 2 will be issued to every one equity share held by the shareholders as on the record date.
The bonus issue is aimed at rewarding existing shareholders, enhance liquidity, and expand the shareholder base, and the Free reserves of Rs. 28.31 Crore will be utilized for the Bonus Issue
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Dividend
In Addition, it has approved the declaration to issue a final dividend at 20 percent i.e., Rs.0.40 per equity share for the financial year 2023-24, and has fixed July 26, 2024, as the record date for determining eligible shareholders of the company for dividend.
Promoter Group shareholders, comprising 60.18 percent of the shares of the company, are waiving their dividend (Final Dividend for Financial Year 2023-2024) considering the forthcoming expansions of the company.
About the Company
Bibloc Construction Limited is engaged in the business of manufacturing, sale, and marketing of building blocks and aerated autoclaved concrete blocks (AAC) under the brand names NXTBLOC, NXTFIX, NXTPLAST, and many more.
It has a strong clientele base of 100+ marquee clients, with well-known players like, Adani, Macrotech Developers, Prestige, Oberoi Realty, Birla Estates, Mahindra Lifespaces, Sunteck Realty, Raheja Universal, Raymond Realty, and many others.
Financials and Ratios
Its revenue from operations grew by 21.57 percent from Rs. 200 Crores in FY23 to Rs. 243 Crores in FY24, accompanied by profits of Rs. 30 Crores to Rs. 31 Crores.
In terms of Return ratios, it has reported a return on equity(ROE) of 34.2 percent and a return on capital employed (ROCE) of 24 percent. It has reported a debt-to-equity ratio of 1.37.
Written by: Bharath K.S
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