Power Mech Projects Ltd., a leading infrastructure company, has made an exciting announcement that has caught the attention of investors. The company revealed that it will issue one bonus share for every one share held by shareholders, marking a significant move in its history. This announcement came following the company’s board meeting on Thursday, August 22.
First-Ever Bonus Issue for Power Mech Projects
This is the first time Power Mech Projects has decided to issue bonus shares to its shareholders. The company has previously refrained from splitting its stock, though it has consistently rewarded shareholders with dividends. The decision to issue bonus shares reflects the company’s strong financial performance and its commitment to rewarding its investors.
The board has set September 28, 2024, as the record date for determining the shareholders eligible for the bonus shares. To formalize this bonus issue, Power Mech will seek approval from its shareholders at the upcoming Annual General Meeting (AGM), scheduled for September 27, 2024.
Stellar Stock Performance
Power Mech Projects made its stock market debut in 2015, with an Initial Public Offering (IPO) price of ₹640 per share. Since its listing, the company’s stock has seen a remarkable increase, rising over nine times its IPO price. In the last five years alone, the stock has delivered an impressive 823% return to its investors, highlighting the company’s robust growth and strong market position.
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The company’s stellar performance is further underscored by its recent financial results. In the June quarter, Power Mech Projects reported a 21% year-on-year increase in net profit, alongside a 16.4% rise in revenue. These strong financials have undoubtedly contributed to the positive sentiment around the stock.
Market Reaction and Future Outlook
Following the bonus issue announcement, shares of Power Mech Projects ended Thursday’s trading session 0.8% higher at ₹6,400. The stock has been on a strong upward trajectory, rising in five out of the last six trading sessions, during which it has gained 20%.
The bonus issue is likely to attract more investors, given the stock’s outstanding performance and the company’s solid financial health. As Power Mech Projects continues to grow and expand its operations, the bonus shares represent an opportunity for existing shareholders to increase their holdings and participate in the company’s future success.
Investors will be closely watching the AGM on September 27, where the final approval for the bonus issue will be sought.
