Oil India Surges To Record As Shares Trade Ex-Bonus
The stock rose as much as 7.59% during the day to Rs 512 apiece on the NSE.
Shares of Oil India Ltd. gained nearly 8% to an all-time high on Tuesday after turning ex-bonus. The company's board has fixed July 2 as the record date for the issue of bonus shares in the 1:2 ratio to eligible shareholders, according to an exchange filing on May 20.
The paid-up share capital of the company pre-bonus issue stood at Rs 1,084.4 crore and post-bonus issue, it will be Rs 1,626.6 crore.
A bonus issue, also called a scrip or capitalisation issue, involves providing existing shareholders with free additional shares. The last bonus that Oil India had announced was in 2018. The issue was in the same ratio of 1:2, with shares quoting ex-bonus from March 27, 2018.
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Oil India's stock rose as much as 7.59% during the day to Rs 512 apiece on the NSE. It was trading 4.7% higher at Rs 498.25 per share, compared to a 0.07% decline in the benchmark Nifty at 10 a.m.
The share price has risen 205.48% in the last 12 months and 101.33% on a year-to-date basis. The total traded volume so far in the day stood at 5.8 times its 30-day average. The relative strength index was at 69.69.
Fourteen out of the 18 analysts tracking Oil India have a 'buy' rating on the stock, two recommend 'hold' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3%.
