PFC gets shareholders' nod to issue bonus shares in proportion of 1:4

State-owned Power Finance Corporation (PFC) has received shareholders' approval to issue bonus shares by capitalising up to Rs 660.02 crore in its securities premium account.

"All business items proposed for the 37th AGM of the company have been approved with requisite majority," a BSE filing said.

The PFC had proposed to issue bonus shares by capitalising securities premium account to the extent that each shareholder is entitled to a new equity share of Rs 10 each for every four equity shares of Rs 10 each.

The proposal was listed for the annual general meeting (AGM) held on September 12.

The PFC's board, at its meeting on August 11, recommended issuing bonus shares to shareholders in the proportion of 1:4 by capitalising Rs 6,60,02,03,520 in the securities premium account.

The company also got shareholders' approval to appoint Parminder Chopra as its Chairman and Managing Director (CMD).

Pursuant to the Ministry of Power order on August 14, 2023, the board of directors, on the recommendation of the Nomination and Remuneration Committee, appointed Chopra as the CMD with immediate effect.

Chopra's appointment on the board of the company required shareholders' approval, as per Sebi regulations.