Reliance Industries Ltd (RIL) has officially approved a 1:1 bonus share issue, marking its first such offering since 2017. The announcement was made during a board meeting on September 5, 2024, and is set to benefit approximately 35 lakh shareholders, who will receive one additional share for every share they currently hold. This move aims to enhance liquidity and broaden the investor base, as the company continues to emphasize its commitment to long-term growth and shareholder value.
The bonus shares will be issued from the company’s securities premium account, general reserves, or retained earnings as of March 31, 2024. The board also recommended increasing the authorized share capital from ₹15,000 crore to ₹50,000 crore to accommodate this issuance. The exact record date for determining eligible shareholders will be announced later.
RIL’s stock has shown significant growth, having quadrupled in value since the last bonus issue in 2017, when shares were priced around ₹700. As of the latest trading session, RIL shares were down approximately 1.4%, closing at ₹2,985.95, reflecting a broader market trend. Despite this dip, the stock has gained around 16% year-to-date and nearly 25% over the past year.
At the recent annual general meeting, Chairman Mukesh Ambani reiterated the company’s philosophy of creating wealth for India and enhancing the quality of life for its citizens. He stated, “When Reliance grows, we reward our shareholders handsomely,” underscoring the company’s focus on sustainable growth across its diverse business segments, including telecommunications and retail.
Analysts view the bonus issue as a sign of RIL’s robust financial health and a strategic move to maintain investor confidence. Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, noted that such initiatives often lead to increased liquidity and potential future value appreciation, which can outweigh any immediate negative impact on share prices
