Hindustan Petroleum Corporation Limited (HPCL) has scheduled a board meeting for May 9, 2024, to consider and approve the issuance of bonus shares to its shareholders.
However, the record date for the issuance of bonus shares is yet to be declared by the company. The company will also be declaring its financial results for the quarter ended on March 31, 2024.
If approved by the board, this will be marked as the third time the company will be distributing bonus shares to its shareholders. Previously, in 2016, it allocated bonus shares at a ratio of 2:1, entitling shareholders to receive two additional shares for each share held. Additionally, the company issued a bonus share issuance in a ratio of 1:2 back in 2017.
Companies issue bonus shares to utilize their accumulated free reserves, enhance their Earnings Per Share (EPS), augment their paid-up capital, and simultaneously diminish their reserves. Shareholders receive these shares at no extra expense, hence commonly referred to as complimentary shares or free shares.
Also read: M&M Finance’s Q4 Results: Net profit declines 9.5% YoY; Company announces dividend ₹6.3 apiece
Eligibility for bonus shares is limited to investors who purchase the stock before the ex-date. Investors acquiring shares on or after the ex-date will not qualify for bonus shares.
The share price of Hindustan Petroleum closed approximately 4% lower at ₹513.65 per share on the NSE. Over the past 12 months, HPCL shares have surged by over 100%.
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Published: 06 May 2024, 05:03 PM IST
