With all of its about Rs 14,000 crore cash committed in future projects and capital expenditure, the company is considering issuing bonus shares rather than cash dividends as a method of providing income to shareholders.
The board on October 27 will consider the second quarter financial results as also "consider a proposal for declaration of bonus issue", the company said in a regulatory filing.
Issuing bonus shares increases the issued share capital of the company, which is then perceived as being bigger than it really is, making it more attractive to investors.
ONGC had in December 2010 issued 1:1 bonus share along with a special dividend of Rs 32 per share and a stock split. At that point, ONGC equity share of Rs 10 face value was split into two of Rs 5 face value.
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Prior to that, the company had in 2006 issued a 1:2 bonus issue.
The government holds 68.93 per cent stake in ONGC, the nation's biggest oil and gas explorer and the most profitable public sector unit.
The ONGC stock closed up 4.6 per cent at Rs 292.90 on BSE today.
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