Oil Stocks- Tide Water Oil zooms 20% on stock split, bonus issue plan
Shares of Tide Water Oil (India) were locked in the upper circuit of 20 per cent, hitting their 52-week high of Rs 7,196.90 on the BSE on Thursday, after the company said it will consider a stock split and bonus issue in the forthcoming board meeting to be held on June 10, 2021.
Till 09:51 am, a combined around 18,000 equity shares had already changed hands, and there were pending buy orders for 7,400 shares on the NSE and BSE.
“The board of directors of the company is scheduled to meet June 10, 2021 to consider the audited financial results of the company for the quarter and year ended 31st March, 2021 and will also consider recommendation of final dividend for the financial year 2020-21 and book closure for the purpose,” Tide Water Oil said in exchange filing.
In the said meeting, the board of directors will also consider a proposal of subdivision of shares and declaration of bonus issue to/for the shareholders at such rate/ratio to be decided therein, Tide Water Oil (India) said.
Earlier in March 2016, the company had issued bonus shares in the ratio of 1:1 i.e. one bonus share for every share held in the company. The oil marketing & distribution company had also sub-divided face value of equity shares from Rs 10 to Rs 5.
Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity. In the past one year, the stock of Tide Water Oil has rallied 59 per cent as compared to a 4-per cent rise in the S&P BSE Sensex. In one year, it more-than-doubled or rose 109 per cent against 61 per cent surge in the benchmark index. The stock hit an all-time high of Rs 8,317 in January 2016.