Oil & Natural Gas Corp (ONGC) added to the bull party on Dalal Street on Wednesday, saying it was contemplating a share split or bonus issue. The company, however, did not say when it planned to time it.

ONGC chairman & managing director RS Sharma told reporters, ?We are sensitive to the concerns of small investors that they may be able to buy ONGC shares at current prices. And, therefore, in due course we will resort (to a share split or bonus issue). However, I cannot say anything on the time frame.?

A bonus issue will benefit the government hugely as it is the single-largest shareholder in the company. Last year, ONGC had announced a 1:2 bonus issue.

However, analysts said the move did not make sense as the company?s equity base of Rs 2,852 crore was already on the high side Moreover, they said ONGC being a zero-debt company, it should not look at another bonus issue as it can instead easily raise the same funds from the market.

A stock split involves splitting the face value of each share into smaller denominations. This allows more people to invest in the company, at a possibly lower premium.

ONGC?s stock gained 5.9% to Rs 901.05 on news of share split plus bonus issue. The stock touched an intra-day high of Rs 924.50 and a low of Rs 860 after opening at Rs 860.

?Today ONGC?s market cap is behind Reliance?s by over Rs 1 lakh crore, while last year, before it announced a 1:2 bonus, Reliance?s market cap was Rs 40,000 crore behind ONGC?s. So the question is why should ONGC even consider another bonus or stock split at this stage,? an analyst asked on condition of anonymity.

The source also pointed out that since the announcement of a possible bonus or a stock split by ONGC was price sensitive information, they should have been made after informing the stock exchanges where the company was listed.

ONGC declared its highest-ever dividend of 310% in 2006-07. It recorded its highest turnover of Rs 56,904 crore, up by 18% over that of the previous year, and its highest-ever net profit of Rs 1,643 crore, which is 8.4 % more than that of the previous fiscal.