IGL board OKs proposal to issue bonus shares in 1:1 ratio

The bonus share issue proposal is subject to the approval of shareholders of Indraprastha Gas.

The company will inform the record date for determining eligible shareholders entitled for issuance of bonus shares in due course.

The pre-bonus paid-up equity share capital as of date is Rs 140 crore, consisting of 70 crore equity shares of Rs 2 each.

The company would appropriate a sum of Rs 140 crore from the general reserve or retained earnings for issuance of bonus shares. The company has a total balance of 8,411.74 crore as free reserves for capitalization as of March 31, 2024.

Accordingly, the post-bonus paid-up equity share capital is expected to be around Rs 280 crore, consisting of 140 crore equity shares of Rs 2 each.

The bonus shares would be credited within 2 months from the date of board approval, i.e., on or before 9 February 2025.

Further, the company's board has also approved increasing the authorized share capital to Rs 1,000 crore from Rs 220 crore by consequential alteration to the capital clause of the Memorandum of Association of the company, subject to shareholders' approval.

Indraprastha Gas is a natural gas distribution company. It supplies natural gas as cooking and vehicular fuel.

The company's consolidated net profit declined 17.69% to Rs 454.88 crore in Q2 FY25 as compared with Rs 552.67 crore in Q2 FY24. However, revenue from operations (excl. excise duty) rose 6.91% YoY to Rs 3,697.6 crore in Q2 FY25.

The scrip rose 0.35% to Rs 386.95 on the BSE.