Hindustan Petroleum Corporation Ltd (HPCL) has announced that Friday, June 21, will be the record date to determine which shareholders are eligible to receive bonus shares in a 1:2 ratio. This means shareholders will get one bonus share for every two shares they currently own. The announcement was made on May 27.
The company’s Board has recommended this bonus share issue, pending approval from shareholders through a Postal Ballot (e-Voting) process managed by CDSL. The voting started at 9:00 AM on Monday, May 13, 2024, and will end at 5:00 PM on Tuesday, June 11, 2024.
This is the third time in seven years that HPCL is issuing bonus shares. In 2016, the company issued bonus shares at a 2:1 ratio, and in 2017, at a 1:2 ratio.
Bonus shares are extra shares given to shareholders for free, used to make use of the company’s reserves, boost Earnings Per Share (EPS), increase paid-up capital, and lower reserves.
To be eligible for HPCL’s bonus shares, investors need to buy the stock before the ex-date. Shares purchased on or after the ex-date won’t qualify for the bonus shares.
On May 9, HPCL reported a 25% year-over-year drop in its consolidated net profit for Q4 FY24, totaling ₹2,709 crore, due to lower refining margins and higher costs. However, the company showed strong sequential profit growth, beating market expectations. The ₹2 per litre reduction in petrol and diesel prices from March 15 also affected earnings, but less significantly.
HPCL’s consolidated total income for Q4 FY24 grew by 3% quarter-on-quarter and 6% year-on-year, reaching ₹1.22 lakh crore.
On May 27, HPCL’s shares closed at ₹556 each, up 2.31% from the previous close of ₹543.35 on the previous Friday.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.