The Indian Energy Exchange or IEX shareholders approve the issue of bonus shares and an increase in authorised share capital. In a regulatory filing, the company said the shareholders have approved the resolutions as contained in the notice by the requisite majority on November 25, 2021, through the remote e-voting postal ballot process as set out in the postal ballot notice.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares they receive depends on the number of shares of the firm they already hold.
On October 21, 2021, the board of the company had approved an issue of bonus shares wherein IEX shareholders will get two bonus shares for every one share held by them. All shareholders who own shares of the firm before the ex-date, which is determined by the firm, are eligible for bonus shares.
The bonus shares will be issued to eligible members of the company in the proportion of two new fully paid-up equity shares of rupee one each for every one existing fully paid-up equity shares of rupee one each held by them, by capitalising a sum not exceeding Rs 59,91,13,022 out of the company’s free reserves and capital redemption reserve as on March 31, 2021,” the filing said.
The company said bonus shares will be issued out of free reserves created out of profits of the company available at the end of FY21.
The company has also received shareholders’ approval to increase the authorised share capital and consequent alteration in the capital clause of the memorandum of association.
The authorised capital of a company is the maximum amount of share capital that the company is authorised by its constitutional documents to issue to shareholders.
The current authorised share capital of the company stands at Rs 40.25 crore divided into 40,25,00,000 equity shares of rupee one each.
The company proposes to increase its authorised share capital to Rs 100 crore divided into 1,00,00,00,000 equity shares of rupee one each to cover the issuance of bonus shares.
The Indian Energy Exchange (IEX) is an Indian electronic system based power trading exchange regulated by the Central Electricity Regulatory Commission (CERC).
