New Delhi: The board of Reliance Industries Ltd will consider issuing 1:1 bonus shares on September 5, the company said in a regulatory filing on Thursday.
Reliance, the nation’s most valuable company, had last issued bonus shares in September 2017.
“A meeting of the Board of Directors of the company is scheduled to be held on Thursday, September 5, 2024 to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalization of reserves,” the firm said in the stock exchange filing.
Prior to the 1:1 bonus issue in 2017, Reliance had in 2009 issued 1:1 bonus share.
This would be the fifth time RIL, led by Mukesh Ambani, has issued bonus shares. The company last offered 1:1 bonus shares in 2017 and had previously done so in 1997 and 2009. The first bonus share issue by RIL was in 1983, where shareholders received three shares for every five held.
The proposed bonus issue is expected to enhance the liquidity of RIL’s shares in the stock market, making them more accessible to a broader range of investors. This could potentially attract new investors and provide existing shareholders with additional value.
Mukesh Ambani, Chairman of Reliance Industries, addressed shareholders during the 47th Annual General Meeting (AGM) on August 29, stating, “When Reliance grows, we reward our shareholders handsomely. And when our shareholders are rewarded handsomely, Reliance grows faster and creates more value. This virtuous cycle has been the guarantor of your company’s perpetual progress.”
At 1:45 pm on August 29, RIL notified the stock exchanges of the upcoming board meeting, which will determine the specifics of the bonus share issue. By 2:00 pm, RIL shares were trading 2.4% higher at Rs 3,068 apiece, reflecting positive investor sentiment following the announcement.
The AGM was a significant event, not just for the shareholders but also for the broader market, as Reliance Industries is a key player in multiple sectors, including energy, retail, and telecom. The company’s market capitalisation stands at over Rs 20 lakh crore, making it a dominant force in the Indian economy.
