 "8 PSUs declare bonus issue in 2016")
Eight public sector undertaking (PSUs) companies have rewarded bonus shares to their shareholders thus far in the current calendar year 2016 (CY16).
Oil and Natural Gas Corporation (ONGC), Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (BPCL), Indian Oil Corporation (IOC), Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and Engineers India, total seven companies, have announced bonus issue since May 2016.
Oil India has joined the list, taking PSUs tally to eight. The state-owned oil exploration & production company on Wednesday announced that the board will meet on November 28, to consider issue of bonus shares.
Of these seven companies – BPCL, Engineers India, IOC, PFC and REC – issued bonus shares in the ratio of 1:1 - one share for every one held. HPCL issued in the ratio of 2:1 and ONGC in 1:2.
The number of PSUs declared bonus shares is the highest in any calendar year, according to data available with the Capitaline Plus. Last year, Bharat Electronics was the sole central public sector enterprises (CPSEs) that issued bonus shares during this period.
HPCL issued bonus shares after a more than one decade. IOC issued after a gap of seven years, while ONGC and Engineers India after six years and Oil India and BPCL after four years.
“The Department of Investment and Public Asset Management (DIPAM) in a letter to CPSEs asked them to pay dividend at the rate of 30% of net profit or 5% of the networth, whichever is higher. "CPSEs with surplus cash have been asked to buyback shares or issue bonus shares to increase the value of government holding,” according to PTI report dated July 24, 2016 suggests. CLICK HERE TO READ FULL REPORT.
Thus far in CY2016, the stock prices of all these companies have outperformed the market by gaining in the range of 15% and 60%, as compared to 0.3% fall in the S&P BSE Sensex.
Oil and Natural Gas Corporation (ONGC), Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (BPCL), Indian Oil Corporation (IOC), Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and Engineers India, total seven companies, have announced bonus issue since May 2016.
Oil India has joined the list, taking PSUs tally to eight. The state-owned oil exploration & production company on Wednesday announced that the board will meet on November 28, to consider issue of bonus shares.
Of these seven companies – BPCL, Engineers India, IOC, PFC and REC – issued bonus shares in the ratio of 1:1 - one share for every one held. HPCL issued in the ratio of 2:1 and ONGC in 1:2.
The number of PSUs declared bonus shares is the highest in any calendar year, according to data available with the Capitaline Plus. Last year, Bharat Electronics was the sole central public sector enterprises (CPSEs) that issued bonus shares during this period.
HPCL issued bonus shares after a more than one decade. IOC issued after a gap of seven years, while ONGC and Engineers India after six years and Oil India and BPCL after four years.
“The Department of Investment and Public Asset Management (DIPAM) in a letter to CPSEs asked them to pay dividend at the rate of 30% of net profit or 5% of the networth, whichever is higher. "CPSEs with surplus cash have been asked to buyback shares or issue bonus shares to increase the value of government holding,” according to PTI report dated July 24, 2016 suggests. CLICK HERE TO READ FULL REPORT.
Thus far in CY2016, the stock prices of all these companies have outperformed the market by gaining in the range of 15% and 60%, as compared to 0.3% fall in the S&P BSE Sensex.
| Company | 31/12/2015 | LTP | % chg |
| BPCL | 446.68 | 629.25 | 40.9 |
| Engineers India | 241.25 | 278.50 | 15.4 |
| HPCL | 278.65 | 442.80 | 58.9 |
| IOCL | 214.33 | 291.95 | 36.2 |
| Oil India | 378.50 | 443.35 | 17.1 |
| ONGC | 241.90 | 278.55 | 15.2 |
| PFC | 100.70 | 124.80 | 23.9 |
| REC | 113.28 | 129.80 | 14.6 |
| Sensex | 26117.54 | 26051.81 | -0.3 |
| LTP : Last traded price on BSE in Rs at 12:05 PM. | |||