Last Updated:
With this transfer, IGL turns into the primary in its sector to suggest issuing free shares to shareholders
IGL shares rise on bonus challenge plans
Shares of pure fuel distribution firm Indraprastha Gas (IGL) rose as a lot as 4% on Thursday’s early commerce, reaching Rs 374.80 on the BSE, following the announcement that the corporate plans to suggest a bonus share challenge at its upcoming board assembly on December 10.
In a press release launched on December 4, IGL mentioned, “A gathering of the Board of Directors is scheduled for December 10, 2024, to think about the proposal for the issuance of Bonus Shares to the fairness shareholders of the corporate in a ratio to be mounted, topic to shareholders’ approval.”
This announcement follows IGL’s interim dividend of Rs 5 per share in November and a last dividend declared in September. If accepted, this can mark the primary time the corporate has declared a bonus share challenge for its shareholders.
With this transfer, IGL turns into the primary in its sector to suggest issuing free shares to shareholders, a step not taken by its City Gas friends akin to Mahanagar Gas (MGL) or Gujarat Gas.
In 2017, IGL had undertaken a inventory cut up, changing one Rs 10 face worth share into 5 Rs 2 face worth shares. Similarly, Gujarat Gas carried out a inventory cut up in 2019, whereas MGL nonetheless maintains a Rs 10 face worth for its shares.
The announcement of IGL’s board assembly comes amidst a pointy decline in its inventory value, which is down over 35% from its current peak of Rs 570. Mahanagar Gas has additionally seen a 36% drop from its peak of practically Rs 2,000, whereas Gujarat Gas is down about 30% from its current excessive.
Last month, IGL introduced a 20% discount in its home fuel allocation, efficient from November 16, following an analogous discount in October. As a consequence, IGL, MGL, and Gujarat Gas raised their costs, however analysts imagine these value hikes might not be sufficient to offset the discount in provide.
Market skilled Prakash Diwan famous on November 18 that whereas there could also be alternatives to purchase these shares sooner or later, it could be prudent to attend for just a few months to permit the state of affairs to stabilize.
Shares of IGL closed 0.3% decrease on Wednesday at Rs 360.2.
Disclaimer:Disclaimer: The views and funding ideas by consultants on this News18.com report are their very own and never these of the web site or its administration. Users are suggested to verify with licensed consultants earlier than taking any funding selections.
