Stocks

Nalco shareholders okay bonus, stock split

PTI Bhubaneswar | Updated on March 05, 2011

Navaratna PSU National Aluminium Company Ltd (Nalco) has said that it is going for capital restructuring by splitting one equity share of Rs 10 into two equity shares of Rs 5 each.

The company approved 1:1 bonus i.e. one bonus share for each share held. The decision was endorsed at an Extraordinary General Meeting of shareholders held here today.

“By enhancing the number of shares and reducing the price for each share, the float and liquidity of the share shall be enhanced in the stock exchanges,” the Nalco Director (Finance) & CMD in-charge, Mr B.L. Bagra, said in a statement after the meeting.

“This is also expected to increase the total market capitalisation and enhance value to the shareholders,” he added.

Nalco’s paid-up capital of Rs 644.31 crore now stands enhanced to Rs 1,288.62 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) i.e. shares to its employees.

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 finalised, the sources said.

Published on March 05, 2011

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