Power Finance Corporation (PFC) has announced a bonus issue of equity shares to its shareholders in the proportion of 1:4. This means, for every four shares investors hold, they will get an additional bonus share. The bonus issue is subject to the approval of shareholders at the company’s upcoming annual general meeting (AGM).
The bonus issue will be funded by capitalizing a sum of Rs. 660 crore from the company’s securities premium account. The bonus shares will be credited to shareholders’ accounts within two months from the date of approval of the AGM.
The bonus issue is a positive development for PFC shareholders. It will increase their stake in the company without any additional cost. The bonus shares will also dilute the company’s equity, which could lead to a lower share price in the short term. However, in the long term, the bonus issue is likely to be beneficial for shareholders as it will increase the company’s profitability and shareholder value.
The bonus issue is also a sign of PFC’s financial strength. The company has been consistently profitable in recent years and has a strong balance sheet. The bonus issue is a way for PFC to reward its shareholders for their support.
The ex-date for the bonus issue is yet to be announced. Shareholders who wish to be eligible for the bonus shares must buy PFC shares before the ex-date. The record date for the bonus issue will also be announced soon.
The bonus issue is a positive development for PFC and its shareholders. It is a sign of the company’s financial strength and its commitment to rewarding its shareholders. The bonus shares are likely to dilute the company’s equity in the short term, but in the long term, they are likely to be beneficial for shareholders as they will increase the company’s profitability and shareholder value.