BHEL gets shareholders’ nod for bonus share, 79% dividend
State- owned power equipment maker Bharat Heavy Electricals (BHEL) has received shareholders’ approval for the proposal to issue one new equity bonus share for every two existing shares.
The proposal was listed on the agenda for the annual general meeting held on September 22. It was passed by the requisite majority, BHEL said in a BSE filing on Monday.
The shareholders have also approved the proposal to give a final dividend of 39 per cent. With this, the total dividend for the financial year 2016-17 will stand at 79 per cent.
According to the proposal, shareholders will be issued one new bonus equity share of ~2 each for every two existing shares of ~2, each fully paid up.
Prior to the bonus issue, the company had 2.45 billion shares of ~2 each aggregating ~489.52 crore. After the bonus issue, the number of shares will increase to 3.67 billion of ~2 each, aggregating at ~734.28 crore.
The company will require ~244.76 crore of free reserves for implementing the bonus issue. As of March 31 this year, the company had defined free reserves and surplus of ~31,769.74 crore.
Earlier, the company had said the bonus share are estimated to be credited to shareholder accounts by October 9.
The company’s shares closed at ~127.35 apiece, down 1.85 per cent on the BSE.