1:2 Bonus, Rs 3.75/Sh Dividend Record Date: BUY Maharatna PSU Oil Stock That Rose By 191%; Highest Rs 775/tp

Maharatna PSU company, Oil India is a hot stock to buy ahead of the record date for bonus issues and dividends. Brokerage Motilal Oswal has set a target price of Rs 775, which is currently the highest.

Currently, Oil India's share price is at Rs 699.60 apiece, up by 3.3% on June 14 with a market cap of Rs 75,864.99 crore. In the trading hours, the stock touched a new 52-week high of Rs 708.85 apiece. In six months, the stock has zoomed by 117%.

A Maharatna Company, OIL is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas and is the second-largest national oil and gas company in India.

Oil India Bonus Issue:

The company recommended Bonus Shares in the ratio of 1:2 i.e. 01 (one) equity share of Rs. 10/- each for every 02 (Two) existing equity shares of Rs. 10/- each fully paid up subject to the approval of shareholders through Postal Ballot [E-Voting]. The Board has fixed Tuesday, 02nd July 2024 as the Record Date to determine the eligibility of shareholders to receive bonus shares.

This will be Oil India's fourth bonus share in less than fifteen years. The last time Oil India distributed free bonus shares was in March 2018 in a ratio of 1:2. Before this, Oil India also delivered a bonus issue of 1:3 in January 2017, and a 3:2 bonus in March 2012.

Oil India Dividend:

Also, the board recommended a final dividend of Rs. 3.75 per equity share having a face value of Rs. 10/- each (pre-bonus), which translates into a final dividend of Rs. 2.50 per equity share having a face value of Rs. 10/- each (post-bonus) for the financial year 2023-24, subject to the approval of the shareholders of the Company.

The final dividend would be paid within 30 days from the date of declaration at the AGM. The final dividend is in addition to the Interim Dividend of Rs. 3.50/- (pre-bonus) and the second Interim Dividend of Rs. 8.50/- (pre-bonus) paid for the financial year 2023-24. The record date for payment of the final dividend will be fixed and intimated in due course.

For the fiscal 2023-24, earlier, Oil India delivered an interim dividend of Rs 8.50 per share (ex-dividend on March 18, 2024) and Rs 3.50 per share (ex-dividend on November 22, 2023).