ONGC trades weak ahead of bonus issue

Oil and Natural Gas Corporation (ONGC) has dipped 2.6% to Rs 304 on the BSE in intra-day trade ahead of the stock go for ex-bonus in the ratio of 1:2. The stock price will factor in the issuance of bonus shares on Thursday, December 15, 2016 to the existing investors.

The stock has outperformed the market by gaining 11% from Rs 280 after the company on October 24, announced that the board will consider a proposal for declaration of bonus issue on October 27. The S&P BSE Sensex was down 5% during the same period.

On Tuesday, the stock ended at Rs 312, hit a 52-week high of Rs 315 on the BSE in intra-day trade. The rise in crude oil prices also led rally in upstream oil company.

The company engaged in oil exploration & production business has fixed December 16, 2016 as record date for the purpose of ascertaining the eligibility of shareholders for issuance of bonus shares in the ratio of 1 new equity bonus share of Rs 5 each for every 2 existing equity shares of Rs 5 each held.

ONGC, the third best performer among the 30 share Sensex companies, was up 29% thus far in the current calendar year 2016, against 2.2% rise in the benchmark index. Tata Steel (up 62%) and Power Grid Corporation (31%) was up more than 30% each till yesterday.

At 01:18 pm; the stock was down 1.8% at Rs 306 on the BSE, as compared to 0.37% decline in the benchmark index. The trading volumes on the counter jumped more than three-fold with a combined 8.49 million shares changed hands on the NSE and BSE.

Oil and Natural Gas Corporation Limited (ONGC)