Bonus Alert: HPCL to issue free shares after seven years; Stock up 100% in a year
Bonus Alert: HPCL to issue free shares after seven years; Stock up 100% in a year
Hindustan Petroleum Corporation Limited (HPCL) will hold a board meeting on May 9, 2024, to consider and approve the issue of bonus shares to the company’s shareholders.
The record date for the bonus issue, if approved, is yet to be determined.
This will be 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.
Also, 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.
The Hindustan Petroleum Corp Ltd. stock settled nearly 4% lower at ₹513.65 apiece on the NSE today. HPCL shares have rallied more than 100% over the last 12 months.