Ircon International Limited or Indian Railway Construction Limited is an engineering and construction organization. The company is specialized in transport infrastructure. This PSU was established in 1976, by the Government of India under the Indian Companies Act 1956. Recently Ircon International announced that its board of directors held a meeting on Monday. In the meet, the directors have approved and recommended the issuance of fully paid up Bonus Shares in the ratio of 1:1. Those who are unaware of this ratio mean that for one fully paid-up equity share for every one fully paid-up equity share held. The company has seen a surge in its share price. As they share touches a 52 week high of Rs 108.49 and a 52 week low of Rs 72.80 on February 11, 2021, and 13 October 2020 respectively.
Ircon International’s share price
The share was trading at the price of around 2.3% higher at Rs 91 per share on BSE at 11:19 am. Also, the company said in the exchange filing that they will announce the record date in the due course. In the context of bonus equity shares, the company has issued our free out of reserves of the company. Also, it has made it available as of March 32, 2021.
Jump in Profit after tax
The company has also informed that they had seen a surge in its profits after tax. As the jump was of 35% which has kept the revenues up to Rs 103 crores in the December quarter. If the data was lool from December 2020 then the company’s total order book stood at Rs 32,814 crore which was Rs 30,709 crore for railway projects and Rs 2,105 crore for highway projects.
The current share price of Ircon International
Currently, the company’s share price is trading for Rs 90.85 which is +1.55 (1.74%). Now with the introduction of these bonus shares the share capital of the company will increase. However, there will be no such increment in the net assets of the company. These bonus shares are issued according to each shareholder’s stake in the company. This will further increase the number of shareholders in the company. As the company will soon announce the record date for the issuance of the share.