Indian Oil Corporation Limited (IOC) has declared that it will issue bonus shares to its shareholders. Know details
Indian Oil Bonus Shares: Government-owned Indian Oil Corporation Limited (IOC) has declared that it will issue bonus shares to its shareholders in the ratio of 1:2, i.e, for every two existing shares investors hold, one new bonus equity share will be issued. The IOC board has fixed next week, Friday, July 1, 2022, as the record date to determine the eligibility of shareholders to receive bonus shares.
The board of directors of the company in its filing said, “the Board has recommended issue of Bonus Shares in the ratio of 1:2 i.e. One new bonus equity share of Rs. 10/- each for every Two existing equity shares of Rs. 10/- each fully paid up subject to the approval of shareholders through postal ballot. The Board has fixed July 1, 2022, as the record date to determine the eligibility of shareholders to receive bonus shares.”
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Indian Oil Corporation Ltd., incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 1,00,119.58 Crore) operating in the Gas & Petroleum sector. Indian Oil Corporation Ltd. key Products/Revenue Segments include Petroleum Refinery Products, Other Operating Revenue, Other Services, Sale of services, Scrap and Subsidy for the year ending 31-Mar-2021.
The state-run oil marketing company reported revenue of Rs 2,06,461 crore during the quarter under review, as compared to Rs 1,63,733 crore logged in the corresponding quarter of the previous financial year.
Final Dividend Announced
The board had also recommended a final dividend of Rs 3.60 per equity share having face value of Rs 10 each (pre-bonus), which translates into final dividend of Rs 2.40 per equity share having face value of Rs 10 each (post-bonus) for financial year 2021-22.
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The company said in its filing, “The Board has recommended a final dividend of Rs. 3.60 per equity share having a face value of Rs. 10/- each (pre-bonus), which translates into a final dividend of Rs. 2.40 per equity share having a face value of Rs. 10/- each (post-bonus) for the financial year 2021-22, subject to the approval of the shareholders of the Company. The final dividend would be paid within 30 days from the date of the declaration 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 payment of final dividend would be fixed and intimated in due course.”
Share Price History
IOC shares are up over 4 per cent in a year’s period whereas the stock has declined about 5 per cent in 2022 (YTD) so far as compared to a 11 per cent decline in benchmark Sensex during the said period.
What Do Brokerages 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 time period given by the analyst is one year when Indian Oil Corporation Ltd. price can reach the defined target.
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