Hindustan Petroleum Corporation, the PSU oil marketing company (OMC) in its board meeting scheduled today announced a bonus share issue in the ratio of 1:2 i.e. eligible investors will get one share free for every two shares held by them.

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The state-owned company also notified the record date for the bonus issue which is fixed as June 21, 2024. This means to be eligible for the bonus share issue, one should have HPCL shares in their demat account as on the record date.

“The aforesaid Bonus Issue is subject to the approval of Shareholders through Postal Ballot,” added the company’s filing.

This is the company’s third bonus issue. Earlier the company announced the issuance of bonus shares in the ratio of 1:2 in 2017 and before it in 2016 when the bonus share issue was decided in the ratio of 2:1.

Issued in a certain proportion, bonus shares are issued in a certain proportion only to the existing shareholders. Investors in these shares do not have to shell out any money for these shares. The new bonus shares are issued at the existing face value of equity share of the company.

Also, the company on the sidelines announced a final dividend of Rs 16.50 per equity share for FY24.