Hindustan Petroleum Q4 results: HPCL to consider bonus equity share, earnings on May 9

livemint.com:

Q4 results: L&T, Tata Motors, SBI, TVS Motors among companies to declare earnings this week; check full list here If approved by the board, this will be marked as the third time the company will be distributing bonus shares to its shareholders. Previously, in 2016, it allocated bonus shares at a ratio of 2:1, entitling shareholders to receive two additional shares for each share held.

Additionally, the company issued a bonus share issuance in a ratio of 1:2 back in 2017. Companies issue bonus shares to utilize their accumulated free reserves, enhance their Earnings Per Share (EPS), augment their paid-up capital, and simultaneously diminish their reserves.

Shareholders receive these shares at no extra expense, hence commonly referred to as complimentary shares or free shares. Also read: M&M Finance's Q4 Results: Net profit declines 9.5% YoY; Company announces dividend ₹6.3 apiece Eligibility for bonus shares is limited to investors who purchase the stock before the ex-date.

Investors acquiring shares on or after the ex-date will not qualify for bonus shares. The share price of Hindustan Petroleum closed approximately 4% lower at ₹513.65 per share on the NSE.