- Hindustan Petroleum Corporation Ltd (HPCL) has declared a bonus issue in the ratio 1:2, following its Q4FY24 results announcement.
- The Maharatna PSU will issue one free share for every two equity shares held.
- The record date for the bonus issue has been set for June 21, 2024.
HPCL announces a bonus issue in a 1:2 ratio, offering one free share for every two equity shares held, following its Q4FY24 results. The record date is June 21, 2024.
HPCL Declares Bonus Issue Post Q4FY24 Results
Following the announcement of its January-March quarter results for fiscal 2023-24 (Q4FY24), Hindustan Petroleum Corporation Ltd (HPCL) has declared a bonus issue in the ratio of 1:2. This move by the Maharatna public-sector undertaking (PSU) means that for every two equity shares held, one free share will be issued. This decision is expected to bring a significant impact on the company’s stock performance and shareholder value.
Details of the Bonus Issue
The bonus issue’s record date has been fixed for June 21, 2024. This date is crucial as it will determine the shareholders eligible to receive the bonus shares. Those who hold HPCL shares on this date will be entitled to the bonus issue. This strategic move by HPCL is seen as a way to reward its shareholders and encourage long-term investment in the company. It is also expected to increase the liquidity of the shares in the market.
Implications of the Bonus Issue
The announcement of a bonus issue often leads to a surge in the stock price as it increases the number of shares in circulation, thereby improving liquidity. It also enhances the company’s perceived value. For HPCL, this move could attract more investors, thereby potentially driving up the stock price. However, it’s important for investors to note that while a bonus issue increases the number of shares, it does not increase the company’s overall value as the share price adjusts accordingly.
Conclusion
In conclusion, HPCL’s announcement of a bonus issue following its Q4FY24 results is a strategic move aimed at rewarding its shareholders and boosting the company’s market presence. The record date for the bonus issue is set for June 21, 2024. While this move is expected to increase the company’s stock liquidity and attract more investors, shareholders should understand that a bonus issue, while increasing the number of shares, does not increase the company’s overall value.
