HPCL gains after board approves 2:1 bonus issue

HPCL rose 4.74% to Rs 1,174.30 at 11:45 IST on BSE after the company said that its board of directors approved 2 for 1 bonus issue.

The announcement was made after market hours yesterday, 20 July 2016.

Meanwhile, the S&P BSE Sensex was down 31.36 points or 0.11% at 27,884.53.

High volumes were witnessed on the counter. On BSE, so far 3.58 lakh shares were traded in the counter as against average daily volume of 1.16 lakh shares in the past one quarter. The stock hit a high of Rs 1,233.25, which was also a record high for the stock. The stock hit a low of Rs 1,152.10 so far during the day. The stock had hit a 52-week low of Rs 636 on 15 February 2016. The stock had outperformed the market over the past one month till 20 July 2016, advancing 21.67% compared with Sensex's 3.9% rise. The scrip had also outperformed the market in past one quarter, gaining 32.52 % as against Sensex's 8.02% rise.

The large-cap company has equity capital of Rs 338.63 crore. Face value per share is Rs 10.

HPCL said during market hours today, 21 July 2016 that it has fixed 15 September 2016 as the record date for the bonus issue. HPCL said that the board of directors of the company at its meeting held yesterday, 20 July 2016, also considered and recommended increase in authorised share capital to Rs 2500 crore and further recommended capitalisation of reserves.

Separately, HPCL announced after market hours yesterday, 20 July 2016 that the board of directors of the company at its meeting held yesterday, 20 July 2016, approved Visakh refinery capacity expansion from 8.33 million metric tonnes per annum (MMTPA) to 15 MMTPA with residue up-gradation facility meeting BS VI fuel specification compliance under Visakh Refinery Modernization Project (VRMP). The project involves an investment of Rs 20928 crore and is expected to be mechanically completed within 48 months from the date of approval.

HPCL's net profit drops 28.2% to Rs 1552.94 crore on 5.4% drop in net sales to Rs 42125.96 crore in Q4 March 2016 over Q4 March 2015.

HPCL is a public oil marketing company. The Government of India held 51.11% stake in HPCL as per the shareholding pattern as on 30 June 2016.

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