Bharat Electronics' record date for 2:1 bonus shares issue this week. Check details
PSU Bharat Electronics (BEL) declared a bonus issue of equity shares in the ratio of 2:
PremiumGovernment-owned Bharat Electronics' (BEL) record date for the bonus issue of its equity shares that it had recommended in the ratio of 2:1 is this week on Friday, September 16, 2022 and the stock will start trading ex-bonus on Thursday, a day ahead of the record date.
Last month, PSU Bharat Electronics declared a bonus issue of equity shares in the ratio of 2:1, which means that an investor will receive two bonus equity shares for every one equity share held in the company. The company's board of directors decided issuance of bonus shares to the shareholders by capitalizing over ₹487 crore.
“We wish to inform you that the Company has fixed Friday, the 16th September, 2022 as the Record Date to determine the eligible Shareholders to receive bonus shares as approved in the 68th Annual General Meeting (AGM) of the Company held on 30th August, 2022," BEL said in a regulatory filing earlier this month. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Led by the government, Bharat Electronics primarily manufactures advanced electronic products for ground and aerospace applications. The company has a Navratna status by the Government of India. BEL shares are up more than 72% in a year's period whereas the PSU defence stock has surged about 55% in year-to-date or YTD terms as compared to nearly a per cent fall in benchmark BSE Sensex.
For the first quarter ended June 2022 (Q1 FY23), the company's standalone net profit rose to ₹431 crore as against ₹11 crore recorded in the corresponding period of the previous year. Standalone turnover for the period stood at ₹3,063.5 crore against ₹1,564 crore in the same quarter last year. As of June 30, 2022, the company's order book position is around ₹55,333 crore.
“BEL's investments in R&D and rising localisation across large platforms, will augment value-addition, cost competitiveness, and support gross-margin expansion. Lean cost structure with improving operating profitability and NWC cycle, will aid RoE/RoCE, to improve to 24%/31% by FY25ii; while retaining strong FCF and cash chest," said brokerage IIFL in a note earlier this month.
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