Power Mech Projects in an exchange filing on Thursday evening said that its board has approved the issuance of bonus shares in the ratio of 1:1.

What Happened: The company has announced that it will issue one bonus share for every share held by shareholders. This marks the first time the company has issued bonus shares.

After the issue, the Power Mech share price will be adjusted downward to approximately half of its pre-bonus issue level, assuming all other factors remain constant. 

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The board has set September 28, as the record date for the bonus share issue. The company will seek shareholder approval for the bonus issue at its Annual General Meeting (AGM), scheduled for September 27. The record date for the payment of the final dividend is also set for September 28. The company had declared a ₹2 per share final dividend in May.

Earlier in the month, the company bagged an order from Coastal Energen Private Limited. The ₹114 crore order is for the operation and maintenance of 1200 megawatt (2*600 megawatt) coal-based thermal power plant.

Price Action: Shares of Power Mech closed 0.57% higher at ₹6,386.35 on Thursday.

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