Hindustan Petroleum has sought shareholders’ nod for issuing one bonus share for every two held, capitalising the reserves of about Rs 508 crore.
The company has proposed an ordinary resolution through postal ballot for capitalisation of Rs 507.94 crore standing to the credit of security premium/free reserves and issue bonus shares of Rs 10 each, Hindustan Petroleum stated in a BSE filing today.
A full paid bonus share of Rs 10 each would be issued for every two existing equity shares of Rs 10 each held by members, it said.
These bonus shares would not be eligible for final equity dividend for the financial year ended on March 31, 2017 and will be treated as increase in share capital of the company held by each member.
Voting period for the resolution would be from June 2 to July 1, 2017.
Considering the large free reserves of HPCL, the board at its meeting held on May 26, 2017, had recommended the capitalisation of reserves of Rs 507.94 crore and issue of bonus shares to eligible shareholders.