PFC to consider issue of bonus shares next week

Power Finance Corporation said its board will consider issue of bonus shares on July 14 as per capital restructuring guidelines by the government.
PFC said the consideration on bonus shares is based on guidelines on capital restructuring of Central Public Sector Enterprises (CPSE)' issued by Department of Investment & Public Asset Management (DIAPM).
"The Board of Directors of the company in its meeting scheduled to be held on July 14 shall consider recommendation of issue of bonus shares", it said in a regulatory filing.
A 'Navratna' CPSE, PFC promotes efficient investments in the power and allied sectors in India and abroad.

As per the guidelines issued in May, government has asked the CPSEs to capitalise a portion of their large reserves by issuing bonus shares to the existing shareholders.
"The issue of bonus shares helps in bringing about a balance between paid up capital and accumulated reserves and elicits good public response to equity issues of the public Enterprise and its market capitalisation," the government said.
PFC share closed 3.55 per cent higher at Rs 194.15 on BSE.