Mon Oct 07 11:31:43 UTC 2024: ## NBCC India Shares Plunge on Trading Apps, But It’s Just a Technical Glitch

**New Delhi, October 7, 2024:** Investors were left scratching their heads today as shares of NBCC (India) Ltd. plummeted by nearly 30% on several trading platforms. However, the sharp decline is not indicative of the company’s financial health but rather a consequence of a technical adjustment following a bonus issue.

NBCC India shares turned ex-bonus today, with the company issuing one new share for every two shares held by investors (1:2 ratio). This bonus issue, aimed at boosting market liquidity, increases the number of shares in circulation but reduces the price per share accordingly.

While NBCC India shares are currently trading 3.99% higher at Rs 117.25 on the BSE after the bonus adjustment, some trading apps may still be displaying the pre-adjustment price, leading to the misleading drop.

Despite the temporary confusion, NBCC India has been performing exceptionally well. The company’s shares have surged by 109% in 2024 and a staggering 192% over the past year. Furthermore, NBCC India recently secured several new contracts, including a Rs 47 crore order for the SIDBI Vashi project and a Rs 101 crore consultancy order for the National Highways Authority of India (NHAI).

Analysts remain optimistic about NBCC’s future, citing the company’s robust order book of Rs 81,300 crore and its impressive book-to-bill ratio of 7.6 times as positive signs for future growth.

The bonus shares, issued from NBCC’s free reserves, are expected to be credited to shareholders by the end of October. While the temporary price drop on certain platforms may cause concern, investors are advised to look beyond the technical glitch and focus on the company’s strong performance and bright prospects.

Read More