Oil and Natural Gas Corporation (ONGC) may consider issue of bonus shares and stock split at an "appropriate time", chairman and managing director RS Sharma said today.
"Last year, we gave bonus (1:2) and that was not the end of it. We may consider further bonus shares and share split at an appropriate time," Sharma said at the company's 14th annual general meeting today.
Shares of ONGC rose nearly 6% to Rs 901 on the Bombay Stock Exchange today on the news of the likely bonus issue and stock split.
Sharma, however, said the stock split and bonus issue may not happen immediately. "A decision will be taken in due course of time."
ONGC's bonus issue last year was the second in the company's history after the first issue in 1995.
A senior company official, however, said that the chance of another bonus issue was almost negligible in the near future, but a stock split would be considered. "Stock split tends to increase the valuation of a stock to shareholders, and also make it more affordable for investors," the official said.
"Last year, we gave bonus (1:2) and that was not the end of it. We may consider further bonus shares and share split at an appropriate time," Sharma said at the company's 14th annual general meeting today.
Shares of ONGC rose nearly 6% to Rs 901 on the Bombay Stock Exchange today on the news of the likely bonus issue and stock split.
Sharma, however, said the stock split and bonus issue may not happen immediately. "A decision will be taken in due course of time."
ONGC's bonus issue last year was the second in the company's history after the first issue in 1995.
A senior company official, however, said that the chance of another bonus issue was almost negligible in the near future, but a stock split would be considered. "Stock split tends to increase the valuation of a stock to shareholders, and also make it more affordable for investors," the official said.
Source : BS
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