This Maharatna Oil Company Declares 1:2 Bonus Shares, Check Key Details To Receive Bonus

Government owned Indian Oil Corporation Limited (IOC) has declared that it will issue bonus shares to its shareholders. The bonus share will be issued in the ratio of 1:2. Check all the details pertaining to bonus share issue, record date, and final dividend below:

1. IOC announces issue of bonus shares and record date

IOC announces issue of bonus shares and record date: The board of directors of the company in its filing dated May 17, 2022 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 record date to determine the eligibility of shareholders to receive bonus shares." The 1:2 ratio implies that existing shareholders will receive one new bonus equity share of Rs 10 each for every two equity shares.

Record Date: The record date is July 1. It implies shareholders possessing the shares of IOC in their portfolio before this date can receive bonus share.

When it comes to final dividend, the board of directors has said in its filing, "The Board has 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, subject to the approval of the shareholders of the Company. The final dividend would be paid within 30 days from the date of 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."

2. Stock Outlook IOC

The current market price of the stock is 109.20 with a dip of 0.95%. The stock has touched its 52-week high of Rs 141.50 apiece and 52-week low of Rs 101 apiece. The P/E of the stock is 4.10 which is far lesser than the sector P/E of 26.51.

The EPS is 26.66. There are many positives of the company including it is judiciously using its capital to produce profit and brokers have upgraded their recommendations to buy the stock.

3. IOC dividend history

The company has a rich dividend history and has regularly declared dividends in the last 5 years. The company declared dividends 35 times since 2001. The dividend yield is quite strong at 10.43% if the current market price of the stock Rs 109 apiece is taken into consideration. The company has declared an equity dividend of 114% i.e. Rs 11.4 per share in March 2022.

4. About IOC

Government owned 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, according to its official website.

It has emerged India's highest rank Energy PSU in Fortune-500 list (Rank 212), Indian Oil recorded Revenue from Operations of ₹7,28,460 crores and a net profit of ₹24,184 crores for the financial year 2021-22. The market capitalization of IOC is Rs 102,802 crore.