HPCL to consider issuance of bonus shares

7 May 2024 , 09:27 AM

Hindustan Petroleum Corporation Limited (HPCL) has called for a board meeting on May 9, 2024, to discuss and authorize the issuance of bonus shares to its shareholders.

The record date for the bonus shares distribution is pending announcement by the company. The meeting will also address the declaration of financial results for the quarter ended March 31, 2024.

If approved, this will mark HPCL’s third issuance of bonus shares. Previously, in 2016, it allocated bonus shares at a ratio of 2:1, granting shareholders two additional shares for each share held. In 2017, the company issued bonus shares at a ratio of 1:2.

Bonus share issuance enables companies to utilize accumulated free reserves, boost Earnings Per Share (EPS), increase paid-up capital, and reduce reserves. Shareholders receive these shares at no extra cost, often referred to as complimentary or free shares. Eligibility for bonus shares is restricted to investors who hold the stock before the ex-date. Shares acquired on or after the ex-date do not qualify for bonus shares.

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