Indian Oil Corporation (IOC) could well become the second state-run oil market company in two months to declare bonus issue of shares; previously, Hindustan Petroleum Corporation Ltd. (HPCL) had declared 2:1 bonus on July 20.
In a regulatory filing to the Bombay Stock Exchange on Wednesday, IOC said that its board will meet later this month to consider June quarter results and bonus issue. IOC shares closed at Rs. 564.55 apiece, up 3.96 percent from their previous close, after hitting an intraday high of Rs. 569.70.
IOC had last declared bonus issue in October 2009 in the ratio of 1:1.
"With reference to the earlier letter dated Aug. 10, 2016 notifying that a Board Meeting of the Company is scheduled on Aug. 29, 2016, inter alia, to consider and approve the Unaudited Financial Results of the Company for the first quarter ended June 30, 2016.
Pursuant to regulation 29(1) & 29(2) of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, Indian Oil Corporation Ltd has now informed BSE that Board of Directors of the Company is likely to consider issue of Bonus Shares in the said Board Meeting," the public sector company said.
HPCL shares gained 1.85 percent to end at Rs. 1,171.20 apiece, while shares of Bharat Petroleum Corporation Ltd. (BPCL) closed at Rs. 581.80, up 0.81 percent. BPCL had issued bonus shares in the ratio of 1:1 in May this year.
The BSE energy index gained 1.49 percent to close at 10,802.65. The Sensex ended 70 points higer at 28,059 while the NSE Nifty closed at 8,650, up 18 points.
Aurobindo Pharma was the top gainer on NSE Nifty, up 6.91 percent at Rs. 787.50, followed by Tata Power, Maruti Suzuki and Cipla.
The expiry of Futures and Options (F&O) on Thursday kept investor sentiment cautious, brokerage Dynamic Levels said in its post-market note.
"Aurobindo Pharma share price rose over 7% towards the closing of trade today, on Wednesday 24th August 2016; a day after it reported a 23.81% increase in consolidated net profit at Rs 584.96 crore for the first quarter ended June 30, 2016. The profit was on the back of the robust sales. The company had declared a net profit after taxes, minority interest and share of profit of joint ventures at Rs 472.45 crore for the equivalent period of the preceding financial year. Consolidated total income from operations increased to Rs 3,725.90 crore for the June quarter under against Rs 3,298.93 crore reported for the same period a year ago," Dynamic Levels said.