Reliance Industries Limited (RIL) announced on Thursday that its board has approved a 1:1 bonus share issue, marking the first such issuance in seven years. This means every shareholder will receive one bonus share for each share held. The record date for the bonus issue will be announced separately. RIL's share price closed at Rs 2,987.15 on the BSE, down 1.41% from the previous day's close.
"The Board of Directors of Reliance Industries Limited (RIL) today approved the issue of bonus shares in the ratio of 1:1, i.e. every shareholder holding 1 (one) fully paid-up equity share of Rs 10 each on the record date will receive 1 (one) fully paid-up equity share of Rs 10 each," it said.
Increase in authorised share capital
Alongside the bonus issue, the board also recommended raising the authorised share capital to Rs 50,000 crore from the previous Rs 15,000 crore. This marks the sixth bonus issue for RIL since its listing, underscoring the company's commitment to rewarding shareholders during its 'Golden Decade' (2017-2027).
Historical context and growth
RIL previously issued 1:1 bonus shares in 2017, when the share price hovered around Rs 700. Since then, the company’s stock has seen significant growth, reflecting its expansion in sectors like retail and telecom. The firm also conducted a rights issue in 2020, which led to a 2.5x growth in shareholder investment.
"In 2017, Reliance had issued bonus shares in the ratio of 1:1. This was followed by a Rights Issue in 2020, where shareholder investment has grown 2.5 times already. In July 2023, Jio Financial Services Limited was demerged, which is valued 35 per cent higher today from its listing," the firm said.
At the recent annual general meeting, Reliance Chairman Mukesh Ambani pledged to continue rewarding shareholders as the company continues its rapid growth trajectory, with revenues and profits more than doubling in key business arms.
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