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Bonus Alert: HPCL to give one free share for every two held
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
This is the third instance that HPCL will be issuing bonus shares to its shareholders. It had earlier issued bonus shares in the ratio of 2:1, meaning two free shares for every one held earlier in 2016.
Hindustan Petroleum Corporation Limited (HPCL) will issue one free share for every two equity shares held. The record date for the bonus issue has been fixed as June 21, 2024.
This is the third instance that HPCL will be issuing bonus shares to its shareholders. It had earlier issued bonus shares in the ratio of 2:1, meaning two free shares for every one held earlier in 2016. The company had approved a bonus issue in the proportion of 1:2 in 2017.
The companies issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.
Only those investors will be eligible for bonus shares who will buy the stock before the ex-date. If an investor purchases the shares on the ex-date or after that, they will not be eligible to get bonus shares.
HPCL’s March quarter net profit stood at ₹2,843 crore, while revenue came in at ₹1.14 lakh crore in the January-March period.
The company’s operating profit or EBITDA stood at ₹4,803 crore, while margin stood at 4.2%.
Besides, HPCL has also recommended a final equity dividend of ₹16.50 per share on face value of ₹10 each for the financial year 2024.
Record date for the said dividend is August 9, 2024.
The Hindustan Petroleum Corp Ltd. stock was trading 3.87% lower at ₹502.95 apiece on the NSE today. HPCL shares have rallied 96% in the last one year and 26% in 2024 so far.
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