ONGC board approves 1:2 bonus, ₹4.50/share interim

Priya sundarajan | | Updated on: Jan 16, 2018


Q2 profit up 6.3% at ₹4,975 crore

Oil and Natural Gas Corporation Ltd on Thursday rewarded its shareholders with a 1:2 bonus. It also declared an interim dividend of 90 per cent for 2016-17, which would result in a dividend of ₹4.50 on each equity share of ₹5. The total payout on this account will be ₹3,850 crore, said DK Sarraf, Chairman and Managing Director, ONGC.

ONGC will also fork out ₹784 crore to the Central government as dividend distribution tax. The Centre, which holds 68.93 per cent stake in ONGC, will receive an interim dividend of ₹2,654 crore, Sarraf told reporter here.

The record date for distribution of dividend has been fixed for November 5.

With the latest bonus announcement, a shareholder would get one bonus share of ₹5 each for every two shares held in the company. This is subject to approval of shareholders. The last time ONGC declared a bonus was in 2010-11 (1:1). Prior to that, a bonus of 1:2 was declared in 2006-07. In 1995-96, ONGC had issued a bonus of 3.08:1.

ONGC had, some years ago, split its share of the face value of ₹10 each, fully paid into two shares, each of face value of ₹5 each, after which the bonus issue of 2010-11 was carried out.

If approved by shareholders, each equity share of ₹10 each held by shareholders prior to 1995-96, would now amount to 36.72 equity shares of ₹5 each.

Q2 results Meanwhile, ONGC on Thursday reported a net profit of ₹4,975 crore for the second quarter ended September 2016. This was 6.3 per cent higher than the net profit of ₹4,681 crore recorded in the same quarter last year.

Gross revenue for the quarter under review declined to ₹18,395 crore (₹20,512 crore).

For the six months ended September 2016, ONGC reported a net profit of ₹9,207 crore, down 8.4 per cent over net profit of ₹10,050 crore recorded in the same period last year.

Gross revenue declined 16.1 per cent to ₹36,180 crore (₹43,141 crore).

Published on October 27, 2016
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