SAIL (Steel Authority Of India) Bonus Issue

Posted by admin

February 9, 2010

Steel Authority Of India jumped 2.50% on reports the state-run firm may issue bonus shares before its proposed follow-on public offer. The large-cap state-run steel maker has an equity capital of Rs 4130.40 crore. Face value per share is Rs 10. The current price of Rs 209.45 discounts the company’s Q3 December 2009 annualized EPS of Rs 16.23, by a PE multiple of 12.90.

To issue bonus shares, the company’s reserves should be thrice its paid-up capital. As per latest data, Steel Authority Of India (Sail)’s paid-up equity capital stands at Rs 4,130 crore, with consolidated reserves at Rs 24,153.91 crore. According to reports, the proposal of issuing bonus shares is being discussed by the company and the government.

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Bonus Issue