1:1 Bonus Gujarat-Based Company: Promoters Increase Stake Year After Year, Reaching Record High—A True Case of Skin in the Game

In addition, to support the company’s expansion plans, promoters have consistently waived their rights to the final dividend over the past few years.

Promoters increasing their stake in a company often draws attention- and for good reason. It’s widely seen as a sign of growing confidence in the business’s future. One of the Gujarat based company and one of the largest ACC block manufacturers in India has seen their promoter increasing the stake.

The stock is Bigbloc Construction Ltd, Incorporated in 2015, one of the largest AAC block manufacturer in India, with a 1.3 million cubic meter per annual capacity across plants in Gujarat (Kheda, Umargaon, Kapadvanj) and Maharashtra (Wada). The new facility in Kheda is the company’s fourth plant, uniquely equipped to manufacture both AAC blocks and the innovative AAC wall. The company markets its products under the 'NXTBLOC' brand and also among few companies in the AAC industry to generate carbon credits.

With over 2,000 completed projects and 1,500+ in the pipeline, the company’s clients include Lodha, Adani Realty, IndiaBulls Real Estate, DB Realty, Prestige, Piramal, Oberoi Realty, Tata Projects, Shirke Group, Shapoorji Pallonji Group, Raheja, PSP Projects, L&T, Sunteck, Dosti Group, Purvankara Ltd, DY Patil, Taj Hotels, Godrej Properties, Torrent Pharma, GAIL among others.

The promoter group has been gradually increasing their stake in the company every year from around 69.32 per cent in March 2020 to 72.67 per cent as of March 2025. As a result, promoter holding in the stock has reached record high.  In addition, to support the company’s expansion plans, promoters have consistently waived their rights to the final dividend over the past few years. Now, that’s extraordinary – a true example of having skin in the game.

In 2024, to reward loyal shareholders and enhance liquidity, company approved a 1:1 bonus equity share i.e. one bonus equity share for every one existing equity share held by the shareholders. Company also approved proposal to increase authorized share capital from Rs. 15 crore to Rs. 30 crore, divided into 15 crore equity shares of Rs. 2 each.

In FY25, Bigbloc Building Elements Pvt Ltd, a wholly-owned subsidiary, has completed the Phase 2 expansion of its AAC block manufacturing plant in Wada, Maharashtra, doubling its capacity from 2.5 lakh to 5 lakh cubic meters per annum. This milestone positions BigBloc Constructions Ltd as one of India’s largest AAC block manufacturers. At full capacity, Wada plant is expected to generate annual revenues of Rs. 150-200 crore per annum. The company is eligible for 60% subsidy from the state government for the Wada project. Additionally, a 625 KW solar rooftop system was commissioned at the Wada plant alongside the expansion.

Company is advancing its Green Initiative by expanding solar capacity to foster sustainability and reduce its carbon footprint. Company has recently completed installation of rooftop solar projects of 700 KW at the Umargaon plant and 625 KW at Wada and additional 1350 KW solar rooftop system at the new JV facility of Siam Cement Bigbloc, with this, company’s total solar capacity across the Company and its subsidiaries will reach to 3475 KW, reinforcing its commitment to sustainability and commitment to a greener future.

Disclaimer: The article is for informational purposes only and not investment advice.