Indian Oil gains 4% on bonus issue proposal

The stock was up 4% to Rs 399 in intra-day trade after the company announced that the board may consider issue of bonus shares in meeting scheduled on January 30, 2018.

Indian Oil Corporation (IOC) was up 4% to Rs 399 on BSE in intra-day trade on Tuesday after the company announced the board may consider issue of bonus shares in its forthcoming meeting on January 30, 2018.

This is further to our letter dated 17th January, 2018 notifying that a board meeting of the Company is scheduled on Tuesday, the 30th January, 2018, to consider and approve the unaudited financial results of the company for the third quarter ended 31st December, 2017.

It is further notified that the board of directors of the Company may consider issue of bonus shares in the aforesaid board meeting, IOC said in a regulatory filing.

Earlier on August 29, 2016, the board had recommended issue of bonus shares in the ratio of 1:1 i.e. 1 equity bonus share for every 1 existing equity share.

IOC hit an all-time high of Rs 463 on August 31, 2017 underperformed the market since then. The stock had declined 16% as compared to 13% rise in the S&P BSE Sensex till Monday.

At 12:00 PM; it was trading 3% higher at Rs 393 against 0.72% rise in the benchmark index. A combined 3.96 million shares changed hands on the counter on BSE and NSE so far.