Brigade Enterprises Gives Out Its First Bonus Issue
Bonus shares are expected to be issued by Sept. 14.
Brigade Enterprises Ltd. on Monday announced a bonus issue of equity shares, the first by the real estate developer.
The board of the company approved a bonus issue in the ratio of 1:2, according to its stock exchange filing. Bonus shares are expected to be issued by Sept. 14 and around Rs 68.1 crore of reserves will be required for implementing the bonus issue, the company said.
As on March 31, Rs 2,169 crore worth of free reserves, securities premium and capital redemption reserve exist in the company’s books of account, it said.
The company, according to Bloomberg data, has cash and cash equivalents of Rs 222.2 crore.
The board of the company also approved issuing and allotting 42.75 lakh convertible warrants worth Rs 115 crore to the promoter group. Each share warrant is convertible into one share at Rs 269 each, whereby the conversion can be exercised within 18 months of allotment. The issue price of the warrants is at a premium of 0.8 percent to the closing price as on July 15, according to Bloomberg Data.
Edelweiss Securities in its report said that the real estate developer remains one of the top picks in the realty space for the first quarter of of ongoing financial year due to a robust presence in the Bangalore market and an attractive rental portfolio. The key thing to watch out for, according to the brokerage, will be the new leasing activity on under-construction commercial projects and reduction in debt levels.
The Bangalore-based real estate developer said the record date for the bonus issue will be communicated later.
Shares of Brigade Enterprises fell 0.39 percent on Monday, while the Nifty Realty Index declined by 0.11 percent, as per Bloomberg data.