HPCL shares turn ex-bonus today; OMC stock falls 3%

Shares of Hindustan Petroleum Corporation Ltd (HPCL) fell 3 per cent in Friday's trade, as the stock turned ex-bonus amid weak market sentiment. The stock fell 2.72 per cent to hit a low of Rs 339.75 on BSE. The HPCL board had declared one bonus share for every two shares held. 

The oil marketing company on Thursday issued clarification on the treatment of fractional shares on bonus issue. 

"Consequent to this, fractional entitlements may occur on shares held by shareholders in odd numbers (only to the extent of the odd number which in all cases may be one share and the fractional bonus entitlement is 0.5 shares) due to the inability of the company to allot shares in fractions. The fractional entitlements of the shares will be credited to a dedicated Demat account opened for this purpose," HPCL said on Thursday.

HPCL said it would allot the entire fractional share entitlement to a dedicated Demat account opened specifically for the credit of fractions arising from the bonus share allotment. Upon obtaining approval to trade the bonus shares from the exchanges, HPCL would proceed to sell the fractional bonus shares.

"After deducting the related expenses, the proceeds from the sale of fractional bonus shares will be credited to eligible shareholders entitled to receive such proceeds. In the past also, HPCL extended the similar treatment to fractional entitlements arising from the issuance of Bonus shares to all eligible shareholders," HPCL said.