On Thursday, state-run Bharat Electronics Ltd announced the issuance of bonus shares to qualified shareholders.
PSU Navratna has announced a 2:1 bonus issue, which means investors will get 2 shares for every 1 share they hold.

The bonus issue is still subject to approval by the company’s shareholders at the 68th Annual General Meeting (AGM) scheduled for August 30, 2022.

On August 1, the company notified the stock exchange that the board of directors would hold a meeting on Thursday to review the issue of stock issue, which the company’s board has formally approved of directors.

“The proposals mentioned above on increasing the authorised share capital, changing the company’s articles of association, and sending bonus shares still need to be considered and approved by the company’s shareholders at the general meeting of shareholders to be held on August 20, 2022,” the company said.

In addition, the Ministry of Administration has approved an increase in the authorised share capital from Rs 250 crore to Rs 750 crore.

Since 2015, Bharat Electronics has issued bonus shares twice at a ratio of 2:1 and 1:10. The bonus shares were first issued on September 14, 2015, and were subsequently issued on September 28, 2017.

Bonus shares are additional shares offered by a company for free to existing shareholders. Cash-strapped companies may issue bonus shares instead of cash dividends.