Nalco approves stock split, issues bonus shares

Nalco approves stock split, issues bonus shares

Bhubaneswar: Navaratna PSU National Aluminium Company Limited (Nalco) on Saturday said it is going for capital restructuring by splitting the equity share of Rs10 into two equity shares of Rs5 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 on Saturday.

“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 capitalization and enhance value to the shareholders," Bagra added.

Nalco’s paid-up capital of Rs644.31 crore now stands enhanced to Rs1,288.62 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 finalized, sources said.