BPCLs dividend impact on Futures and Options strike | Espresso


Espresso shot of the day – The BPCL Board has recommended mega dividend of Rs 58 per equity share! Read on to know the impact on Futures and Options strike

May 27, 2021
Espresso shot of the day – The BPCL Board has recommended mega dividend of Rs 58 per equity share! Read on to know the impact on Futures and Options strike

BHARAT PETROLEUM CORPORATION LTD 467.75 (-0.75 %) BSE – INE029A01011 | 27TH MAY 2021

On Jan 24, 1976, a new era dawned, as a 100% public sector enterprise, Bharat Refineries Limited, acquired complete ownership of Burmah Shell’s interests in India, including the largest refinery and a nation-wide marketing organization. Bharat Refineries Limited was later named Bharat Petroleum Corporation Limited. An advertisement released by Bharat Refineries Limited in newspapers on Jan 24, 1976, offered the nation its first greetings in a new spirit of dedication.

Recent Drivers

  • On May 27, 2021, the privatisation of Bharat Petroleum Corporation Ltd. (BPCL) is likely to be delayed by another six months as the government is trying to resolve the issue of mandatory open offers that the winning bidder will have to make to companies promoted by the oil major, which may raise the acquisition cost by Rs 20,000 crores.
  • On May 26, 2021, BPCL informed BSE that the Board of Directors of the Company at its meeting has recommended a final dividend of Rs 58 per equity share (including one-time special dividend of Rs 35 per equity share of Rs 10 each) for the financial year ended Mar 31, 2021. The dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM).
  • On May 26, 2021, BPCL reported a net profit of Rs 11,940 crores for the quarter ended March 2021. The company had posted a net loss of Rs 1,361 crores in the year-ago quarter.
  • On May 26, 2021, BPCL reported that its revenue from operations rose 21.5% on a year-on-year basis to Rs 98,755.6 crores for the March quarter as against Rs 81,296 crores.
  • On May 25, 2021, sources at Moneycontrol said that BPCL may sell a part of its stake in Petronet LNG and Indraprastha Gas (IGL) to shed its promoter status to obviate the need for its new owner to make open offers for the two gas companies.
  • On May 10, 2021, The Public Enterprises Selection Board (PESB) has picked Arun Kumar Singh as the Chairman and Managing Director of Bharat Petroleum Corporation Ltd.
  • On Apr 19, 2021, BPCL along with its business partner Air Products has commenced the supply of medical oxygen from BPCL Kochi refinery in view of shortage of the same for critical patients of COVID-19.
  • On Mar 31, 2021, BPCL signed a share purchase agreement to buy the 36.62% equity it does not already own in Bharat Oman Refineries Ltd. from OQ S.A.0. C. (formerly known as Oman Oil Company S.A.O.C) at Rs 27 a share in a deal worth Rs 2,399.26 crores.
  • On Mar 22, 2021, BPCL approved the merger of its gas subsidiary, BGRL, with itself in a bid to streamline corporate structure.

 (Sources: Moneycontrol, Livemint, Business Standard, BSEIndia, The Hindu Business Line)

How Futures & Options will get adjusted?*

In general, dividends below 5% of the market worth of the underlying stock are deemed peculiar dividends and no adjustment in the strike value is made. However, in the case of extraordinary dividends that are at or above 5% of the market worth of the underlying safety, the strike value is adjusted.

With BPCL, it is a case of extraordinary dividends. For BPCL, the whole dividend quantity will be lowered from all the strike costs of the choices contracts. For instance, if a trader is holding a Call at strike 500, the new strike value relevant on the ex-date would turn into 442 after deducting Rs 58 per share. The revised strike costs can be relevant from the ex-dividend date specified by the change.

(Sources: The Economic Times )

Technical Force*

  • S&P BSE 100 month till date gain up by 0.27%
  • Traded on new 52-week-high value 488.00
  • Spurt in volume by more than 4.31 times compared to previous volume | 3 months avg. volume: 7,01,323
  • Quantity traded: 21,67,074 | Deliverable quantity: 9,28,074 (42.81%)
  • Stock price has jumped more than 50% from one year low level: 313.00 | May 27, 2020
  • Daily RSI (14) is near Overbought territory today
  • 52-week-high: 488.00 | 52-week-low: 313

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Some Key Ratios (Source: BSE)

Market Cap: 1,01,466.80 crores

PE: 5.37

OPM%: 13.40

ROE%: 34.91

Promoters holding%: 52.98

Prev. Close: 471.30

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.