Hindustan Petroleum Corporation Limited’s shares were down by 3.19% to ₹338.10 at 1.35 pm on the BSE. The company announced June 21 as the record date for its 1:2 bonus share issuance.
In May, HPCL declared it would issue bonus shares to eligible shareholders, that is, one bonus share for every two shares held. The company will use ₹709.27 crore from its free reserves/share premium to implement this bonus issue.
The bonus shares are set to be credited to eligible shareholders by July 8. HPCL will credit the fractional share entitlements to a dedicated Demat account.
Upon receiving approval to trade the bonus shares from the exchanges, the company will sell the fractional bonus shares and manage the proceeds accordingly.
The company’s paid-up share capital, currently at ₹1,418.55 crore, will rise to ₹2,127.82 crore post-issuance. For Q4 FY24, HPCL reported a 25% drop in net profit to ₹2,709.31 crore, while the full fiscal year 2023-24 saw a record net profit of ₹16,014.61 crore, reversing a loss of ₹6,980.23 crore from the previous year.