- Hindustan Petroleum Corporation Limited (HPCL) has announced a board meeting on May 9, 2024, to discuss and approve the issuance of bonus shares to its shareholders.
- The record date for the issuance of these bonus shares is yet to be declared by the company.
- This will be the third time the company will be distributing bonus shares if approved by the board.
HPCL is set to hold a board meeting to discuss the issuance of bonus shares, marking the third time the company has done so. The record date is yet to be announced.
HPCL’s History of Bonus Shares
In the past, HPCL has allocated bonus shares twice. In 2016, it issued bonus shares at a ratio of 2:1, allowing shareholders to receive two additional shares for each share held. In 2017, the company issued bonus shares at a ratio of 1:2.
The Purpose and Impact of Bonus Shares
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. These shares are received by shareholders at no extra cost, hence they are often referred to as complimentary shares or free shares. However, only investors who purchase the stock before the ex-date are eligible for bonus shares. Those acquiring shares on or after the ex-date will not qualify.
HPCL’s Stock Performance
The share price of Hindustan Petroleum closed approximately 4% lower at ₹513.65 per share on the NSE. Despite this, HPCL shares have surged by over 100% over the past 12 months.
Conclusion
HPCL’s upcoming board meeting to discuss the issuance of bonus shares is a significant event for its shareholders. The company’s history of issuing bonus shares and its strong stock performance over the past year make it a company to watch in the coming months.
