HPCL, BPCL shares trade ex-bonus today; stock prices fall up to 3%

Reacting to the development, the HPCL stock was down as much as 3% to a day low of ₹336 apiece on the NSE on Friday, while BPCL shares fell 1.6% to low of ₹305.1 per piece.

HPCL had announced a 1:2 bonus issue for its shareholders in May, while BPCL had recommended a 1:1 bonus issue around the same time.

“Bonus issue proportion: 1 share for every 2 shares held. Record date for bonus issue: June 21, 2024,” HPCL had said in a stock exchange filing.

BPCL had said, “The Board has recommended the issue of bonus shares in the ratio of 1:1 i.e. one new bonus equity share of Rs 10 each for every one existing equity shares of Rs 10 each fully paid up subject to the approval of shareholders.”

BPCL had added, “The board has fixed Saturday, 22nd June 2024 as the record date to determine the eligibility of shareholders to receive bonus shares.”

Both companies had also informed that the bonus shares would be credited to the eligible shareholders on or before July 8.

A bonus issue is an offer of free additional shares to existing shareholders. In a bonus issue, the value of the investment remains the same, but the number of shares increases.

Ex-bonus date is the day the stock starts trading assuming that the bonus shares have been issued. It means that investors buying shares on ex-bonus date or thereafter would not be eligible to receive bonus shares.