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BigBloc Construction Ltd to consider Bonus Issue

Surat (Gujarat) [India], July 6:  BigBloc Construction Limited, one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels in India is considering a Bonus Issue. Meeting of the company’s board of directors is scheduled on Friday, 19 July 2024 to consider and approve the proposals of bonus shares and increase in the authorized share capital of the company subject to regulatory and shareholders’ approval. Company’s current share capital stands at Rs. 14.14 crore divided into 7.07 crore equity shares of Rs. 2 face value. Reserves and surplus of the company as on 31st March 2024 stands at Rs. 89.87 crore.  

Board meeting on 19 July to approve Bonus and increase in the Authorised Share Capital; As on 31 Mar 24 company’s reserves stands at Rs. 89.87 crore. 

Company has reported a strong operational and financial performance with a 5 year CAGR of 19% in Sales and over 80% in Net Profit. In recognition of the company’s robust financial performance, and commitment to delivering shareholder value, the bonus issue is aimed at reward existing shareholders, enhance liquidity, and expand the shareholder base.

For FY24, company has reported consolidated Net profit of Rs. 30.69 crore. Revenue from Operations during FY24 was reported at Rs. 243.22 crore, rise of 21.55% Y-o-Y as compared to operational revenue of Rs. 200.11 crore in FY23. EBITDA for FY24 stood at Rs. 56.15 crore, rise of 12.29% as against EBITDA of Rs. 50.01 crore. The Company has recommended a final dividend at the rate of 20% for the FY 23-24 subject to the approval in the Annual General Meeting.

Mr. Narayan Saboo, Chairman, Bigbloc Construction Ltd said, “Company stands on the cusp of a remarkable transformation in the AAC Block industry. We are proud to inform our stakeholders that the company is making significant strides in its long-term growth strategy, delivering excellent operational and financial results. As part of our commitment to providing value to our shareholders, we are considering a bonus issue. This move will not only reward our existing shareholders for their continued support but also increase the company’s equity base, thereby enhancing liquidity. We anticipate sustained growth momentum and expect further advancements in the coming years.”

With the vision of launching next-generation walling solution for the Indian market, SIAM Cement BigBloc Construction Technologies Pvt Ltd, a joint venture between BigBloc Construction Ltd and Thailand’s SCG International, has commenced its India operations. The company has invested around Rs. 65 crore in 2.5 lakh cubic meter per annum capacity project in Kheda, Gujarat, which includes India’s first AAC Wall Plant.

Inaugurated on June 10, 2024, by H.E. Ms Pattarat Hongtong, the Ambassador of Thailand to India, the plant will launch wide range of large format AAC Wall products of 8-12 feet of 2 feet width with a thickness of 3-8 inches for the Indian markets. At full capacity, plant is expected to generate Rs. 100 crore in annual revenue. The joint venture aims to share techno-commercial knowledge, foster mutual growth, and introduce innovative building materials. The project can be expanded to 5 lakh cubic meter per year in the second phase with approval from both parties.

Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed company in the AAC Block Space. BigBloc operates three AAC Block plants: one in Umargaon District Valsad, Gujarat, another in Wada, Maharashtra, and the third in Kapadvanj, District Kheda, Gujarat. The new facility in Kheda is company’s fourth plant, uniquely equipped to manufacture both AAC Blocks and the innovative AAC Wall. With this Joint Venture company’s total capacity has increased to 1.3 Million CBM/Annum. It is among very few company in AAC industry to generate carbon credits.

Recently, company’s wholly-owned subsidiary StarBigBloc Building Material Ltd announced plans to raise funds through an SME IPO or preferential issue to support its expansion. The company plans to establish two new manufacturing plants with a combined capacity of 1 million cubic meters per annum – one in Chennai and one in North India. These expansions aim to boost the company’s total capacity to over 1.2 million cubic meters per annum within 4-5 years. The Board of Directors approved the fund-raising on May 23, 2024, with details to be finalized later. Currently, StarBigBloc operates a plant in Ahmedabad with a 250,000 cubic meters per annum capacity, serving Gujarat, Udaipur, and Indore.

Sustainable and non-toxic building construction material, AAC blocks and AAC Walls are lightweight, soundproof, and fire resistant, offer superior build quality, eco-friendly and economical too compared to traditional bricks.

BigBloc Construction Limited is India’s leading AAC block manufacturing company. The Company markets its products under the brand name ‘NXTBLOC‘. The company has executed over 2,000 projects so far and has another 1,500 plus in the pipeline. The company’s clients include Lodha, Adani Realty, IndiaBulls Real Estate, Prestige, Piramal, Oberoi Realty, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T, and Sunteck, Sethia Infrastructure Pvt Ltd, Dosti Group, Purvankara Ltd among others.

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