This Maharatna Company Fixes Record Date For Bonus Shares Issue

India's flagship national oil company Indian Oil Corporation Ltd. (IOC) has recommended issue of bonus shares in the ratio of 1:2. Earlier this month on June 22 IOC unveiled its patented indigenous solar cook top namely Surya Nutan developed by oil refiner's Faridabad's R&D centre. Below are the relevant details pertaining to bonus shares issuance by IOC:

1. Indian Oil Corporation Declares Bonus Share Record Date

The board of directors of Indian Oil Corporation in their BSE filing stated, "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 1'1 July 2022 as record date to determine the eligibility of shareholders to receive bonus shares."

Therefore, the record date for bonus share issuance is July 1, 2022 and the ex-bonus date is June 30, 2022. Now for every two shares that investors have been holding, IOC will issue one new bonus equity share.

2. IOC Stock Outlook

The current market price of IOC share is Rs 110 apiece at 11:43 am. It touched a 52-week high of Rs 141 apiece and a 52-week low of Rs 101.55 apiece. In the last one month, the stock has given a negative return of 3.55% and in last 6 months it has given a negative return of 7.28%.

The company has been effectively using it capital to generate profit. Brokers have also upgraded their recommendations or target price for the stock of IOC. Apparently, there is no threat to the stock.

The PE is quite low at 4.13 than sector PE of 25.33. The EPS is 26.66. The market capitalization of Indian Oil Corporation is Rs 103,649 crore.

IOC Dividend History

The company has a good dividend track record and regularly declared dividend in the last 5 years. It declared an equity dividend of 114% amounting to Rs 11.4 per share for the year ending March 2022. The dividend yield is 10.37% if the current stock price of Rs 110 is considered.

4. About IOC

Indian Oil leverages high-calibre people and state-of-the-art technologies to tap all forms of energy most responsibly and delivering them to the consumers most affordably. India's highest rank Energy PSU in Fortune-500 list (Rank 212), IndianOil recorded Revenue from Operations of ₹7,28,460 crores and a net profit of ₹24,184 crores for the financial year 2021-22, according to the website of the company.