The state-owned NTPC Ltd, which is engaged in the business of generation of electricity and allied activities, is seeking its shareholders’ nod for the issuance of bonus shares. The public sector undertaking in its regulatory filing said that the company is conducting a postal ballot/ e-voting in order to seek shareholders’ “consent for capitalization of reserve and issue of bonus shares.”
NTPC Ltd in its disclosure dated 30/1/2019 announced the issuance of bonus shares along with its quarterly financial report. According to the company’s statement, the Department of Investment and Public Asset Management had issued guidelines on capital restructuring of central public sector enterprises in May 2016.
The state-controlled NTPC Ltd also said, “Consent of members sought to capitalise a sum not exceeding Rs 1,649.09 crore out of the general reserves for allotment of new equity shares of Rs 10 each as fully paid-up bonus shares…in the proportion of 1 (one) new equity share for every 5 (five) existing equity shares held by the members.”
The voting by members is scheduled to take place between February 10 and March 11. The company also declared that Board of Directors recommended the Resolution which is subject to the approval of the Members as an Ordinary Resolution through postal ballot/remote e-voting.