New Delhi: State-run Hindustan Petroleum has sought shareholders’ nod for issuing one bonus share for every two held, capitalising reserves of about Rs508 crore.
The company has proposed an ordinary resolution through postal ballot for capitalisation of Rs507.94 crore standing to the credit of Security Premium/Free Reserves and issue bonus shares of Rs 10 each, Hindustan Petroleum stated in a BSE filing on Thursday.
A full paid bonus share of Rs10 each would be issued for every two existing equity shares of Rs 10 each held by members, it said.
These bonus shares would not be eligible for final equity dividend for the financial year ended on 31 March 2017 and will be treated as increase in share capital of the company held by each member.
The voting period for the resolution would be from 2 June to 1 July 2017.
Considering the large free reserves of the Corporation, the board in its meeting held on 26 May 2017, had recommended the capitalisation of reserves of Rs507.94 crore and issue of bonus shares to eligible shareholders.