Hindustan Petroleum Corporation Ltd (HPCL) shares rallied as much as 10 per cent in the early trade on Thursday after the oil retailer informed bourses that the company has recommended increase in authorised share capital and issue of bonus shares. At 10.43 am, shares of HPCL were trading 5.11 per cent up at Rs 1178.45. The scrip opened at Rs 1233.25 and has touched a high and low of Rs 1233.25 and Rs 1152.10, respectively, in trade so far.
In a BSE filing, HPCL said, “the board at its meeting held on July 20 have considered and recommended increase in authorised share capital to Rs 2,500 crore and further recommended capitalisation of reserves and issue of fully paid bonus shares in the ratio of 2 bonus equity share of Rs 10 each for every 1 (one) existing equity share of Rs 10 each subject to approval of the shareholders at the ensuing Annual General Meeting of the Company scheduled on September 08, 2016.”
In another filing, the company said it has received an approval for capacity expansion of Visakh Refinery from 8.33 million metric tonnes per annum (MMTPA) to 15 MMTPA with residue up-gradation facility meeting BS VI Fuel Specification Compliance under Visakh Refinery Modernization Project (VRMP).
The project involves an investment of Rs 20,928 crore and is expected to be completed within 4 years from the date of approval.
Later, the scrip closed 3.52 per cent up at Rs 1,160.60.