Indian Oil Bonus Stocks: The state-owned Indian Oil Corporation Limited (IOC) has stated that it will issue bonus shares to its shareholders in the ratio of 1:2, i.e. for every two existing shares that investors own, one new bonus share will be issued. The IOC board has set next week, Friday, July 1, 2022, as the record date to determine whether shareholders are eligible to receive bonus shares.
The board of directors of the company said in its filing, “the board has recommended the issuance of bonus shares in the ratio of 1:2, i.e. one new bonus share of Rs. 10/- each for every two existing shares of Rs. 10/- each fully paid up subject to shareholder approval by letter sent by post. The Board has set July 1, 2022 as the record date to determine whether shareholders are eligible to receive bonus shares.”
Founded in 1959, Indian Oil Corporation Ltd. is a Large Cap company (with a market capitalization of Rs 1,00,119.58 Crore) operating in the gas and petroleum sectors. The major product/revenue segments of Indian Oil Corporation Ltd. include petroleum refinery products, other operating income, other services, sales of services, scrap and subsidies for the year ended March 31, 2021.
The state-run oil marketing company reported revenue of Rs 2,06,461 crore during the quarter under review, compared to Rs 1,63,733 crore recorded in the corresponding quarter of the previous fiscal year.
Final dividend announced
The board of directors had also recommended a final dividend of Rs 3.60 per share of shares with a par value of Rs 10 each (pre-bonus), which translates into a final dividend of Rs 2.40 per share of shares with a par value of Rs 10 each (after bonus) for fiscal year 2021-22.
The company said in its filing: “The board of directors has recommended a final dividend of Rs. 3.60 per share of shares with a par value of Rs. 10/- each (pre-bonus), translating into a final dividend of Rs. 2.40 per share with a par value of Rs 10/- each (post-bonus) for the fiscal year 2021-22, subject to approval by the shareholders of the Company.The final dividend should be paid within 30 days from the date of the statement at the AGM. The final dividend is in addition to the interim dividend(s) of Rs 9.00 per share (pre-bonus) paid for the financial year 2021-22. The record date for the payment of the final dividend should be be established and published in due time.”
Share price history
IOC shares are up more than 4 percent in a year, while in 2022 (YTD) stock is down about 5 percent so far compared to an 11 percent drop in benchmark Sensex during the said period.
What do brokers say?
ICICI Securities has a buy call on Indian Oil Corporation with a target price of Rs 145. The current market price of Indian Oil Corporation is Rs 106.65. The period specified by the analyst is one year when the price of Indian Oil Corporation Ltd. achieve the stated goal.
The expert opinions and investment tips in this News18.com report are their own and not the website’s or its management. Users are advised to contact certified experts before making any investment decisions.
Get all the latest news, breaking news, watch top videos and live TV here.