3.16% Dividend Yield: Maharatna PSU Stock To Consider Bonus Shares Next Week; Buy?

As the country's second-largest oil and gas firm, Oil India Limited (OIL) is a state-owned corporation under the administrative authority of the Ministry of Petroleum and Natural Gas. Stock exchanges have been notified by the Maharatna PSU company of its upcoming board meeting on Monday, May 20, 2024. Among other things, the meeting is scheduled to discuss and approve the company's financial results for the quarter and year ending March 31, 2024, as well as a proposal for bonus shares.

Oil India Upcoming Bonus Shares

"We write further to our letter of even no. dated 10.05.2024 regarding intimation of Board Meeting scheduled to be held on Monday, 20th May, 2024 inter-alia, to consider and approve the Audited Financial Results of the Company for the Quarter & Year ended 31st March, 2024 on Standalone and Consolidated basis and recommendation of Final Dividend for F.Y. 2023-24, if any. In this Connection, we further inform that the Board of Directors of the Company may also consider a proposal for issue of Bonus shares in the aforesaid Board Meeting. Since, the Trading window is already closed for the purpose of consideration and approval of Financial Results, the same period will also apply for Bonus Issue, if any," said OIL in a regulatory filing.

Since its inception, OIL has declared bonus shares 3 times in a ratio of 1:2 on 27th March 2018, a 1:3 ratio on 12 January 2017 and a 3:2 ratio on 29 March 2012.

Oil India News

Recently the PSU company informed the stock exchanges regarding the nomination of Government Nominee Directors on the Board of the company. "Shri Rohit Mathur [DIN:08216731], Joint Secretary, MoP&NG [vice Shri Vinod Seshan, Director, MoP&NG] and Shri George Thomas [DIN:10625136], Deputy Secretary, MoP&NG, have been appointed as Government Nominee Directors on the Board of the Company w.e.f. 13th May, 2024. It is confirmed that Shri Rohit Mathur and Shri George Thomas are neither related to any Director of the Company nor been debarred from holding the office by virtue of any order of SEBI/any other authority," said OIL in a regulatory filing.

Oil India Dividend

An equity dividend of 200.00% with a face value of Rs 10 (or Rs 20 per share) has been issued by Oil India for the fiscal year ending in March 2023. With the current share price of Rs. 633, this translates into a 3.16% dividend yield. The company has a strong dividend history and has paid out dividends on a regular basis over the previous five years. Trendlyne data indicates that since February 10, 2010, Oil India Ltd. has issued 35 dividends.

Oil India Share Price Target

"Oil India stock price is bullish on the Daily charts with strong support at 631. A daily close above resistance of 670 could lead to a target of 740 in the near term," said AR Ramachandran from Tips2trades.

Disclaimer

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