Bonus shares are additional shares given to the shareholders based on the number of shares they already own, without charging any additional costs.
These shares are derived from a company’s accumulated earnings, which are converted into free shares instead of being paid out as dividends.
The record date is the specific date set by the issuing company when investors must hold shares to be eligible for corporate events such as dividend distributions, bonus share allotments and many more.
The Boards of the following two companies have recently announced the issuance of bonus shares.
Hindustan Petroleum Corporation Limited
With a market cap of Rs. 74,608.5 crore, the share price of Hindustan Petroleum Corporation Limited (HPCL) surged 2.5 percent on BSE to hit an intraday high of Rs. 537.65 in the trading session of Wednesday, compared to its previous closing price of Rs. 524.4.
The Board approved the issue of bonus shares in a 1:2 ratio, which means, the shareholder will receive 1 share for every 2 shares held.
The record date for the bonus issue is fixed on 21st June 2024, while the estimated date by which bonus shares would be credited is on/before 8th July 2024.
In terms of financials, the company’s revenue from operations grew by 2.6 percent QoQ from Rs. 1,18,027 crore in Q3 FY23-24 to Rs. 1,21,062 crore in Q4 FY23-24, accompanied by a rise in after-tax profit by 280 percent from Rs. 712.84 crore to Rs. 2,709.3 crore, during the same period.
HPCL shares have delivered positive returns of nearly 95 percent in the last one year and around 32 percent returns year-to-date.
Hindustan Petroleum Corporation Limited is engaged primarily in the business of refining of crude oil and marketing of petroleum products, production of hydrocarbons and providing services for the management of E&P Blocks, manufacturing of ethanol, sugar and generation of power and operating Liquefied Natural Gas (LNG) regasification terminal.
Bharat Petroleum Corporation Limited
With a market cap of Rs. 1.322 lakh crore, the share price of Bharat Petroleum Corporation Limited (BPCL) jumped by 2.7 percent on BSE to hit an intraday high of Rs. 623.9 in the trading session of Tuesday, compared to its previous closing price of Rs. 607.3.
The Board approved the issue of bonus shares in a 1:1 ratio, which means, the shareholder will receive 1 share for every 1 share held.
The record date for the bonus issue is fixed on 22nd June 2024, while the estimated date by which bonus shares would be credited is by 8th July 2024.
In terms of financials, the company’s revenue from operations grew by 2.7 percent QoQ from Rs. 1,29,984 crore in Q3 FY23-24 to Rs. 1,32,086 crore in Q4 FY23-24, while the net profit increased by 50.5 percent from Rs. 3,181.42 crore to Rs. 4,789.6 crore, during the same period.
The stock has delivered positive returns of nearly 64.3 percent in the last one year and around 36 percent returns year-to-date.
Incorporated in 1952, Bharat Petroleum Corporation Limited is engaged in the business of refining of crude oil and marketing of petroleum products. Its marketing infrastructure includes a vast network of installations, depots, retail outlets, aviation fuelling stations and LPG distributors.
Written by Shivani Singh
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