NMDC announces 2:1 bonus issue as Q2 profit rises 23% YoY to Rs 1269 crore

The board of NMDC has approved a bonus issue of equity shares in the proportion of 2:1, which means for every one share investors hold in the company, they will get two additional shares.

"The board declared issuance of bonus shares to the shareholders of the company in the ratio of 2:1, i.e. 2 (two) bonus equity shares of face value Rs 1 each fully paid up; for every 1 (One) existing equity share," the company said in a filing.

The record date for the bonus issue will be intimated in due course.


A company issues bonus shares to increase the liquidity of the stock and 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.

All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.

The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.

The bonus issue was announced along with the company's second-quarter results, where it has reported 23% year-on-year (YoY) growth in its standalone net profit to Rs 1,269 crore.

Revenue from operations during the period increased 20% YoY to Rs 4,807 crore.

Apart from the above, the company's board has also approved to increase the authorised share capital of the company to Rs 1,000 crore divided into 1000,00,00,000 equity shares.

On Monday, NMDC shares closed 1.05% lower at Rs 233.5 on the NSE.