Early Wednesday, the shares of a leading player in the power transmission industry with a 45 percent market share fell by 1.2 percent to Rs 249.15 apiece.
Power Grid Corporation of India Ltd has announced to issue bonus shares to its shareholders. On the National Stock Exchange at 12:42 p.m., company shares were trading at Rs 249.40 a share, down Rs 2.45 or 0.97 percent from its previous close price.
According to company’s exchange filing,The company’s board of directors approved the Bonus Issue of Equity Shares in a 1:3 ratio, which means the company would issue one bonus shares for every three shares owned by existing shareholders.The estimated date by which Bonus Shares shall be credited/dispatched is 25th September, 2023.
In June quarter company reported a 0.1 percent marginal decline in sales to Rs 10,436 crore as compared to Rs 10,446 crore in the corresponding quarter of the previous year(Q1FY23).Furthermore, its net profit declined by 5.9 percent to Rs 3,542.7 crore in Q1FY24 from Rs 3,766 crore in Q1FY23.
In addition, the company’s board of directors approved the construction of an 85 MW solar PV power facility in Nagda, Madhya Pradesh.The project’s anticipated cost is Rs 554.91 crore, with a 10-month implementation timeline from the date of award and a 5-year O&M phase for a solar plant.
The company’s profitability ratios are as follows: return on equity is 18.57 percent, return on capital employed is 12.22 percent, net profit margin is 34 percent, and operating margin is 59.60 percent.
Power Grid Corporation of India Limited is engaged in electric power transmission across India, as well as the construction of extra-high voltage alternating current and high-voltage direct current (HVDC) transmission lines between states.
As per current shareholding pattern,the promoters own 51.34 percent of the company, while Foreign institutional investors own 33.14 percent and domestic institutional investors own 12.56 percent stake.
Written by Omkar Chitnis
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