1:10 Stock Split & 10:8 Bonus Shares Ahead: IT Stock Bags Rs 156 Cr Order From UPL Agro

Bharat Global Developers Ltd. (BGDL) (BSE: 521238) which is a progressive leader in sustainable energy, advanced engineering, aerospace application and AgriTech solutions has been awarded a contract worth Rs 156 crores with the UPL Agro Pvt. The oil-grade groundnut production is 3,00,000 tons to be supplied to UPL Agro's facility in Vapi Gujarat over a period of six months. This contract is an encouraging step towards establishing a strong presence of BGDL in the agricultural commodities market.

In addition to this milestone, a 100 % owned subsidiary of BGDL which is situated in Dubai was able to obtain valuable contracts to process and supply precious stones like diamonds and rubies, emeralds and sapphires. The company has also provided services of refining and supplying gold, palladium and other precious metals to wholesalers and designer jewellery stores.

The overall estimated value of these foreign contracts is around AED 109 million {Rs 251 crores}. The subsidiary firm expects to realize profit margins of 10-12% on the orders made and therefore the timely and effective delivery of these particularly provides a perfect opportunity to boost the vision of this new enterprise. A BGDL officer said These orders are significant in that they add to revenues and so being able to monetise them means achieving another milestone in the revenue growth trajectory.

Also, the steps to reward its shareholders and increase the market participants by BGDL have been very active.

The stock split was approved by the Board whereby the share value was reduced from Rs 10 to Rs 1. The split is intended to improve liquidity in the market so that a wider range of investors can deal in the shares. Further, a bonus issue of 10:8 has also been declared whereby each shareholder will get eight shares for every ten shares held by him after the split. The bonus issue, however, will be met from the reserves and this shows the stable position of the BGDL in the market, as the company has sufficient reserves to meet these needs.

These measures applied towards the shareholders are, however, aimed at increasing the returns for shareholders while ensuring the company continues to grow.

The Board is also open to the idea of declaring a dividend in the near quarters as long as the results of the company and the operational needs allow for such payouts.

BGDL has not only been seeking to increase its AgriTech presence through investment in AgriTech solutions but also advancing projects related arms technology such as drone surveillance. At the same time, the firm is increasing its efforts towards renewable energy, in particular, projects that will promote green energy in the world.

Such programs as well as the most recent orders and distribution of rewards to shareholders place BGDL among the actively developing companies which have a great potential to create value in many areas.

BGDL stays focused on advancing its fundamental lines of business by making growth and sustainability a top priority supported by a well-defined scope of opportunities and a commitment to innovation.