News

Published: October 31, 2024
Updated: October 31, 2024

Banco Products Set to Consider 1:1 Bonus Issue and Announces Rs 20 Dividend, Stock Soars 6.78%

Recent Stock Performance and Market Response

Shares of Banco Products (India) Ltd, a small-cap company in the auto ancillaries sector, jumped by 6.78% after the announcement of an upcoming board meeting to discuss the issuance of bonus shares. The stock currently trades at Rs 694.50 on the Bombay Stock Exchange (BSE), with a market capitalization of approximately Rs 4,978.77 crore. This jump reflects investor optimism around the company’s continued shareholder rewards.

Upcoming Board Meeting to Discuss Financials and Bonus Issue

According to an exchange filing dated October 29, 2024, Banco Products has scheduled a Board Meeting on November 13, 2024. The agenda includes reviewing the standalone and consolidated financial results for the quarter ending September 30, 2024, and the consideration of a bonus share issue. If approved, the bonus issue will be funded by capitalizing on company reserves, marking a proactive step towards rewarding its shareholders.

Dividend Announcement and Record Date

Earlier in the year, Banco Products declared a substantial interim dividend of Rs 20 per share, equivalent to a 1000% payout on its Rs 2 face value shares. February 16, 2024, has been set as the record date for this dividend, which will be distributed on or after February 27, 2024. This generous dividend demonstrates the company's commitment to distributing profits back to its investors.

Share Performance and Historic Growth

Banco Products has seen remarkable performance over the past few years. In the last year, the stock offered a 52% return, with a staggering 268% growth over two years and an impressive 515% rally over five years. Its 52-week high and low prices stand at Rs 798 and Rs 441.65, respectively, showcasing its steady growth and resilience in the market.

Banco Products: A Leader in Engine Cooling Systems

Founded in 1961, Banco Products has earned a reputation in the auto industry for its expertise in engine cooling and sealing systems. The company’s commitment to innovation and engineering excellence has firmly positioned it as a leader in this niche market. Banco Products' scheduled board meeting to consider a bonus share issue and the recent Rs 20 dividend announcement further strengthen its appeal to investors. These moves reflect the company’s commitment to rewarding shareholders and underscore its steady growth in the auto ancillary sector.