IEX board approves 2:1 bonus issue, profit jumps 69%2 min read . Updated: 22 Oct 2021, 06:34 AM IST
- IEX revenue from operations rose 56% to ₹109 crore from ₹70.7 crore in the corresponding quarter of the last year.
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Indian Energy Exchange (IEX) reported 69% jump in standalone net profit at ₹78 crore for the September quarter as compared to ₹46 crore in the year-ago period.
On a consolidated basis, the profit for the period increased by 75% to ₹77 crore.
The company's board has also recommended bonus issue of equity shares in the proportion of 2:1, subject to the approval of shareholders through postal ballot.
The recommendation means, for every 1 share a person holds in the company, he/she will get 2 additional shares.
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 record date for the bonus issue is yet to be announced.
However, the estimated date by which bonus shares would be credited is likely to be within two months from the date of Board approval, that is by December 20, 2021.
The bonus issue comes on the heels of a 72% surge in its shares in the September quarter, significantly outperforming a 16% rise in the S&P BSE Power Index.
IEX soared 20% to a record high of ₹956 on Tuesday. However, the shares have been losing for the past two days, falling over 10%.
On Thursday, IEX stock was down by 4% at ₹757.95 on NSE. Since the start of 2021, the scrip has gained by a massive 267%.
IEX's revenue from operations grew by 56% to ₹109 crore in the reporting period from ₹70.7 crore in the corresponding quarter of the last year.
Segment wise, revenue from the gas exchange inched up substantially to ₹2 crore from a meagre ₹24 lakh in the same period of last year.
IEX's total expenses have increased marginally to ₹17.9 crore in the reporting period, while the total income rose to ₹121 crore.
"Over the next decade, with India increasingly looking at EVs (electric vehicles) and big companies like Tata Power focusing in that area, the demand for energy is going to rise, and IEX is rightly placed for this kind of outlook," said Gaurav Garg, head of research at CapitalVia Global Research.
How the bonus issue works
A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors. 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 you receive depends on the number of shares of the firm you already hold.
Now, under IEX bonus issue, 59,91,13,022 equity shares with face value of Re 1 each (total face value ₹59,91,13,022) would be issued. The share capital of the company before the bonus issue stands at ₹29,95,56,511, divided into 29,95,56,511 equity shares of face value of Re 1 each.
The share capital post the bonus issue would be ₹89,86,69,533, divided into 89,86,69,533 equity shares of face value of Re 1 each.
The company said free reserves of ₹59,91,13,022 are required for implementing the bonus issue.
All shareholders who own shares of the firm before the ex-date, which is determined by the firm, are eligible for bonus shares.
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