IGL shares progress over 3% on bonus issue plan
IGL share price jumped nearly 4 per cent in mid-day trade on December 5 after the city gas distributor announced that the board will consider a proposal to issue bonus shares on December 10.
“It is notified that the Board of Directors is scheduled to meet on December 10, 2024 to consider a proposal to issue bonus shares in the prescribed proportion to the equity shareholders of the company, subject to the approval of the shareholders,” a statement issued by the company on December 4 said.
The company has not announced the bonus ratio and is likely to announce it on December 10.
IGL stock reacted sharply to the announcement of the company’s corporate action and the stock rose 3.82 per cent in morning trade to hit an intraday high of Rs 374 per share on the NSE.
The stock opened with a gain of 3.82 per cent. At the time of publication, the stock was trading 2.23 per cent higher at Rs 368.30 per share.
The gas distribution company had paid an interim dividend of Rs 5 per share in November and a final dividend in September. So far this year, IGL shares have fallen a massive 12.65 per cent from their year-end high. The benchmark Sensex has gone up 11.9 per cent during the same period.
The stock witnessed a decline after the Centre announced its decision to cut priority gas allocation to city gas distributors. Lower allocation in APM means that the Centre has cut the supply of low-priced natural gas from old fields to city gas retailers.
