Indian Energy Exchange (IEX) today informed the stock exchanges that the company has fixed 6 December as record date for the purpose of finding out eligibility of shareholders entitled for issuance of bonus equity shares.
The company’s board has recommended bonus issue of equity shares in the proportion of 2:1, subject to the approval of shareholders through postal ballot.
The recommendation means, for every 1 share a person holds in the company, he/she will get 2 additional shares. The company said bonus shares will be issued out of free reserves created out of profits of the company available at the end of FY21.
The bonus issue comes on the heels of a 72% surge in its shares in the September quarter, significantly outperforming a 16% rise in the S&P BSE Power Index.
A company usually issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
IEX reported 69% jump in standalone net profit at ₹78 crore for the September quarter as compared to ₹46 crore in the year-ago period.
On Tuesday, IEX stock was down by 0.71% at ₹806.95 on NSE. Since the start of 2021, the scrip has gained by a massive 267%.
IEX’s revenue from operations grew by 56% to ₹109 crore in the reporting period from ₹70.7 crore in the corresponding quarter of the last year.
IEX is India’s premier energy marketplace, providing a nationwide automated trading platform for the physical delivery of electricity, renewables, and certificates.
More recently, IEX has pioneered cross border electricity trade expanding its power market beyond India in an endeavour to create an integrated South Asian Power Market.
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