Bonus Issue: Suzlon's peer, after a 462% rally in a year will give free shares on Thursday

Bonus Issue: Suzlon’s peer, after a 462% rally in a year will give free shares on Thursday

The board of Inox Wind Ltd. will meet on Thursday, April 25, to consider the issue of bonus shares, it said in an exchange filing. This is the first such corporate action on record that the company will be undertaking.

Record date for the proposed bonus issue of shares is yet to be determined.

Companies issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.

Last year, Inox Wind’s board had approved the scheme of amalgamation of Inox Wind Energy into Inox Wind. Shareholders of Inox Wind Energy received 158 equity shares of Inox Wind for every 10 shares held. In addition, 10 share warrants of Inox Wind Energy were also issued for ₹847 apiece.

Inox Wind recently received an order for the supply of 210 MW of wind turbine generators (WTGs) from Hero Future Energies (HFE). This was a repeat order for its 3 MW Wind Turbine series.

Shares of Inox Wind have surged 462% in the last 12 months. However, the start of 2024 has been a volatile one for the stock as it has gained only 13% so far. Last month, both Inox Wind, along with its peer Suzlon saw a steep correction on the back of reports that the Ministry of New and Renewable Energy is looking to bring back “reverse auctions” for auctioning wind power capacity to energy companies.

The ministry had sent a letter to companies like NTPC, NHPC, SJVN and other PSUs with the directive, citing reasons of undersubscription and higher tariff discovery in recent wind bids, according to those reports.

Shares of Inox Wind had ended 4.7% higher on Monday at ₹596.