Nalco approves stock split, issues bonus shares
Bhubaneswar: Navaratna PSU National Aluminium Company Limited (NALCO) today said it is going 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 shareholders held here today.
"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 Director (Finance) & CMD in-charge B L Bagra NALCO, said in a statement after the meeting.
"This is also expected to increase the total market capitalisation and enhance value to the shareholders," Bagra added.
NALCO`s paid-up capital of Rs 644.31 crore now stands enhanced to Rs 1,288.62 crore, without any cash consideration, company sources said.
The company has also decided to amend the Article of Association, to make a provision for issue of Employees Stock Options (ESOP), that is shares to its employees, they said.
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 ESOP, including price, is however yet to be finalised, sources said.