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Oil marketing company Indian Oil Corporation (IOC) shares surged more than 2% to 74.8 apiece on the BSE as the stock started trading ex-bonus in Thursday's session, a day ahead of its record date for the 1:2 bonus shares issue.

The company's board of directors has recommended issue of bonus shares in the ratio of 1:2, i.e, for every two existing shares investors hold, one new bonus equity share will be issued. The board fixed Friday, July 1, 2022 as record date to determine the eligibility of shareholders to receive bonus shares.

"The board has recommended issue of bonus shares in the ratio of 1:2 i.e. One new bonus equity share of 10/- each for every Two existing equity shares of 10/- each fully paid up subject to the approval of shareholders through postal ballot. The Board has fixed 1'1 July 2022 as record date to determine the eligibility of shareholders to receive bonus shares," the company had informed in an exchange filing. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

Indian Oil reported a 31% drop in the fourth quarter ended March 2022 net profit as record refining margins were wiped away by a margin squeeze in petrochemicals and losses on auto fuel sales. Standalone net profit of 6,021 crore in January-March, compared with 8,781 crore in the same period a year back. Sequentially, the profit was higher than 5,861 crore in the previous quarter.

The state-run oil marketing company reported revenue of 2,06,461 crore during the quarter under review, as compared to 1,63,733 crore logged in the corresponding quarter of the previous financial year. The core gross refining margin (GRM) or the current price GRM for the year 2021-22 after offsetting inventory gains came to $7.61 per barrel, the company had said.

The board had also recommended a final dividend of 3.60 per equity share having face value of 10 each (pre-bonus), which translates into final dividend of 2.40 per equity share having face value of 10 each (post-bonus) for financial year 2021-22.

 

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