Hindustan Petroleum Corporation Ltd (HPCL) has set Friday, June 21, as the record date to determine shareholders eligible for the issuance of bonus shares in a 1:2 ratio, the Maharatna oil major announced on May 27.
“The Board of the Company has recommended issue of bonus shares in the ratio 1 :2 i.e., one bonus equity share of~ 10 each for every two existing equity shares of ~ 10 each fully paid up to the Members of the Company as on the Record Date i.e. Friday, 21′ 1 June 2024, subject to the approval of the shareholders through the process of Postal Ballot (e-Voting) administered by CDSL which commenced from 9.00AM on Monday May 13, 2024 and expires at5.00 PM on Tuesday, June 11, 2024,” the company said in an exchange filing.
HPCL is preparing to issue bonus shares for the third time in seven years. In 2016, the company distributed bonus shares at a 2:1 ratio, giving shareholders two free shares for every one they held. The following year, HPCL approved another bonus issue at a 1:2 ratio.
Bonus shares are additional shares given to shareholders at no extra cost. This strategy is used to leverage the company’s free reserves, enhance its Earnings Per Share (EPS), increase paid-up capital, and reduce reserves.
To qualify for HPCL’s bonus shares, investors must purchase the stock before the ex-date. Shares bought on or after this date will not be eligible for the bonus shares.
On May 9, the company reported a 25% year-over-year decline in its consolidated net profit for Q4 FY24, amounting to ₹2,709 crore, due to lower refining margins and increased costs.
However, it reported significant sequential profit growth, surpassing market expectations. The ₹2 per litre reduction in petrol and diesel retail prices, effective from March 15, also influenced earnings, though to a lesser extent.
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The oil marketing company’s (OMC) consolidated total income increased by 3 per cent quarter-on-quarter and 6 per cent year-on-year to ₹1.22 lakh crore in Q4 FY24.
The shares of HPCL ended Monday’s trading session in green, was up 2.31 per cent higher. The stock closed at ₹556 per share on May 27, against previous close at ₹543.35 on Friday last week.
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Published: 27 May 2024, 06:32 PM IST
