HPCL up 3.5 pc on bonus shares announcement

Stocks of state-owned Hindustan Petroleum Corporation (HPCL) rose by 3.5 per cent today after the company said it will issue 2:1 bonus shares following a government directive.
The stock went up by 3.52 per cent to settle at Rs 1,160.60 on BSE. During the day, it surged 9.99 per cent to Rs 1,233.25 -- its 52-week high.
At NSE, it rose by 3.47 per cent to close at Rs 1,159.90.
On the volume front, 5.91 lakh shares of the company were traded on BSE and more than 41 lakh shares changed hands at NSE during the day.
HPCL will issue two bonus shares of Rs 10 each for every existing one, the company said in a regulatory filing.

This will be subject to approval of shareholders at the upcoming annual general meeting scheduled for September 8, 2016.
HPCL said its board has approved raising the authorised share capital to Rs 2,500 crore and further recommended capitalisation of reserves.
The government had written to all profit-making public sector units to consider buying back shares or issuing bonus shares to put their surplus cash to use and giving their owner, the government, more value.