Power Finance Corporation board to consider bonus issue, dividend on August 11

The board of Power Finance Corporation will consider a proposal for issue of bonus shares to its investors on August 11. The company will also announce its results on the same day.

"The Board of PFC will also be considering a proposal for issue of bonus shares to the equity shareholders of the company in the ratio, as it may deem fit by way of capitalization of reserves, subject to approval of shareholders," the company said in a filing.

The company has not yet announced the record date for the same and will be informed soon.

A company issues bonus shares for its 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. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.

All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares.

The bonus shares once allotted will rank pari‐passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.

Further, the Board will also consider and likely approve a proposal relating to the declaration of interim dividend, if any, for the financial year 2023-24.

Power Finance Corp funds power projects in India. The company serves state power utilities, central power sector utilities, power departments, private power sector utilities, joint sector power utilities, power equipment manufacturers, and municipal power utilities.

On Tuesday, the company's shares closed 0.90% higher at Rs 269.2 on NSE.