This move would also enhance the liquidity of RIL’s shares in the stock market, making them more accessible to a broader range of investors.
Reliance Industries Ltd (RIL), India’s most valuable company, will review a proposal for a 1:1 bonus share issue at its board meeting on September 5.
This decision aligns with the Mukesh Ambani-led conglomerate’s strategy to reward shareholders following strong financial performance and business expansion.
“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, the issue of bonus shares in the ratio of 1:1 to the Equity Shareholders of the Company by capitalization of reserves,” RIL stated in a stock exchange filing on August 29.
The proposed move is also expected to enhance the liquidity of RIL’s shares in the stock market, making them more accessible to a broader base of investors. This would be RIL’s first bonus issue since 2017, when the oil-to-chemicals conglomerate similarly issued bonus shares at a 1:1 ratio.
“At 1:45 pm today, Reliance Industries Limited notified the stock exchanges that the Board of Directors will meet on September 5 to consider issuing bonus shares in the ratio of 1:1. 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,” Reliance Industries Chairman Mukesh Ambani stated during the 47th Annual General Meeting.
At 2 pm on August 29, Reliance Industries shares were up 2.4 percent, trading at Rs 3,068 per share.
The announcement from RIL preceded the 47th annual general meeting, held on August 29. Reliance Industries Ltd’s market capitalization exceeds Rs 20 lakh crore.
Disclosure: Moneycontrol is part of the Network18 group, which is controlled by Independent Media Trust. Reliance Industries is the sole beneficiary of this trust.
