Oil India – Board Meeting on May 20 to Consider Issue of Bonus Shares

Established over a century ago, Oil India (OIL) traces its roots back to the discovery of crude oil in Digboi, Assam, in 1889. Originally known as Burma Oil Company (BOC), the company witnessed several transformations before emerging as the entity we know today. 

Corporate Structure:

Incorporated as ‘Oil India Private Ltd‘ on February 18, 1959, the company began as a joint venture between BOC, holding two-thirds, and the Government of India (GoI), with a one-third stake. By 1961, this partnership evolved into a 50:50 joint venture between BOC and GoI. Eventually, in 1981, Oil India became a wholly-owned enterprise of the Government of India. 

Public Offering and Government Stake:

The company’s journey towards expansion and diversification took a significant step forward with its initial public offering (IPO) in 2009. As of March 31, 2023, the Government of India retained a majority equity stake of 56.66% in OIL.Recognizing its significant contributions to the nation’s energy sector, Oil India was bestowed with Navratna status in 2010, signifying its status as one of the nine jewels among public sector enterprises. Building upon this achievement, the company attained Maharatna status in 2023, a testament to its sustained excellence and strategic vision.

Core Operations:

Oil India’s core operations revolve around the exploration, development, and production of crude oil and natural gas, alongside the transportation of these vital resources. Additionally, the company is actively involved in the production of liquefied petroleum gas (LPG), catering to the burgeoning energy needs of the nation.A notable asset in Oil India’s portfolio is its significant equity stake of 69.63% in Numaligarh Refinery Ltd (NRL). Situated in Numaligarh, Assam, NRL operates a refinery with a capacity of 3 million metric tonnes per annum (MMTPA), playing a pivotal role in refining crude oil and meeting the demand for petroleum products.

On a recent trading day, amidst a backdrop of negative market sentiment, Oil India’s stock exhibited notable activity. Opening at Rs 622.50, the stock found support around the 20-day moving average (DMA) before surging to an intraday high of Rs 637.80.

Upcoming Board Meeting:

The upcoming Board Meeting of Oil India, scheduled for May 20, 2024, emerges as a significant catalyst for the company’s stock. During this meeting, the Board will deliberate upon and approve the Audited Financial Results for the Quarter and Year ended March 31, 2024, on both standalone and consolidated bases. Additionally, considerations will be made regarding the recommendation of a Final Dividend for the Financial Year 2023-24, if deemed appropriate. Moreover, the possibility of issuing Bonus shares will be deliberated upon by the Board of Directors.

Historical Bonus Issuances:

Oil India has issued bonus shares three times since its listing. The most recent bonus share issuance occurred in 2018, with a ratio of 1:2, granting shareholders one additional share for every two shares owned.

As Oil India continues its journey of growth and value creation, the anticipation surrounding its forthcoming Board Meeting underscores the company’s commitment to shareholder value and transparency in governance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.