State-owned Bharat Electronics Ltd (BEL) said on August 1 that its board would consider a proposal to issue free shares to its shareholders at a meeting scheduled for August 4, 2022.
In its regulatory filing, the company said, “…we would like to advise that a meeting of the board of directors of the company is scheduled to be held on Thursday, August 4, 2022, among other things, to consider a proposal to issue Free Shares to shareholders of the company.”
From 2015 to present, Bharat Electronics has twice issued free shares in a ratio of 2:1 and 1:10. The free shares were first issued on September 14, 2015, then on September 28, 2017.
Free shares are additional free shares that a company offers to existing shareholders. Cash-strapped companies can issue bonus shares instead of cash dividends.
Last month, the government-owned aerospace and defense electronics company reported a net profit of Rs 431.49 crore in the June quarter. The company had reported a PAT of Rs 11.15 crore in the corresponding period of the previous year. In the quarter ended June, its total consolidated operating revenue jumped to Rs 3,140.61 crore.
In March this year, Hindustan Aeronautics Ltd (HAL) signed a contract with Bharat Electronics for the co-development and co-production of a Long Range Dual Band Infrared Search and Tracking (IRST) system for Sukhoi fighter jets. Su-30 MKI.
The contract was signed under the MAKE-II of the Defense Acquisition Procedure (DAP) 2020, under the “Make in India” initiative.
Shares of Bharat Electronics Ltd ended at Rs 282.75, up Rs 7.70, or 2.80% on BSE.
(Edited by : Shoma Bhattacharjee)