BPCL announces ex-dividend date. What it means for investors
Premium- BPCL's final dividend is subject to the approval of the shareholders at the Annual General Meeting (AGM) scheduled for September 27
Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL), while announcing its fourth quarter (Q4) earnings in May, had announced that the board approved a final dividend of ₹58 per share, which includes a one-time special dividend of ₹35 per equity share. And now, the company has declared its dividend ex-date, which is September 16.
The final dividend, recommended by the board at its meeting on May 26, is subject to the approval of the shareholders at the Annual General Meeting (AGM) scheduled for September 27, BPCL said. The company intimated that the register of members and the share transfer books of the company will remain closed from 18th-27th September 2021 (both days inclusive) for the purpose of payment of final dividend.
Ex-dividend describes a stock that is trading without the value of the next dividend payment. The ex-dividend date, which is typically before the record date, determines whether the buyer of the stock will be entitled to receive its upcoming dividend. The record date is when the company identifies the stockholders eligible to receive the dividend.
One needs to own or buy the stock before the ex-dividend date in order to receive the upcoming dividend. If the owner of the stock sells the shares before the ex-dividend date, the individual is not entitled to receive dividend from the company. Whereas, if they sell the stock post ex-date, they will still get the dividend.
For the quarter ended June (Q1FY22), BPCL reported 27.6% drop in net profit at ₹1,501.65 crore. The nation's second largest oil refiner and fuel marketing company had a net profit of ₹2,076.17 crore in the year-ago quarter. The company's revenue from operations rose to ₹89,687 crore in April-June this year from ₹50,616.9 crore last year. The company earned $4.12 on turning every barrel of crude oil into fuel during April-June, up from a gross refining margin of $0.39 per barrel in first quarter last year.
The government is selling its entire 52.98% stake in BPCL. Tuhin Kanta Pandey, Secretary to the Department of Investment and Public Asset Management (DIPAM), which is running the sale process, recently had said the government intends to complete the BPCL privatisation this year.
