Power Finance Corp recommends 1:1 bonus share issue

New Delhi, Jul 14 () Power Finance Corp today said its board has approved issuing one bonus share for every equity share held by shareholders and increasing authorised share capital of the firm to Rs 10,000 crore from Rs 2,000 crore.
The company in a filing to the BSE said that its board in the meeting held today recommended to the shareholders to approve at the forthcoming AGM the issuance of bonus shares by capitalising the "securities premium account".
"The holder of each share of the company shall be entitled to one bonus shares (i.e. in the ratio of 1:1)," PFC said in the filing.
The board also approved increase in the authorised share capital from present Rs 2,000 crore divided into 200 crores equity shares of Rs 10 each to Rs 10,000 crore divided into 1,000 crore equity shares of Rs 10 each.
A 'Navratna' CPSE, PFC promotes efficient investments in the power and allied sectors in India and abroad.
As per the guidelines issued in May, government has asked the CPSEs to capitalise a portion of their large reserves by issuing bonus shares to existing shareholders.
"The issue of bonus shares helps in bringing about a balance between paid up capital and accumulated reserves and elicits good public response to equity issues of the public Enterprise and its market capitalisation," the government had said.
PFC share closed 4.66 per cent higher at Rs 209.95 on BSE. KKS MR