Reliance Industries Ltd (RIL) on Thursday announced plans to discuss a 1:1 bonus share at its board meeting scheduled for September 5.
Aiming to reward shareholders, the proposal is made in the midst of robust financial results and ongoing industry expansion.
Addressing shareholders during the 47th Annual General Meeting (AGM), Reliance Industries Chairman Mukesh Ambani said, “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.”
RIL stated that its Board of Directors would convene to discuss suggesting the issuance of bonus shares in a 1:1 ratio to current shareholders in a formal statement that was submitted to the stock exchange on August 29.
Subject to shareholder approval, the bonus shares would be issued by capitalising the company’s reserves.
RIL, under the leadership of Mukesh Ambani, would be issuing bonus shares for the fifth time. The company had previously offered 1:1 bonus shares in 1997 and 2009, with the most recent offering being in 2017. In 1983, RIL issued its first bonus shares, giving stockholders three shares for every five that they owned.
It is anticipated that the planned bonus issuance will increase RIL’s share liquidity and provide accessibility for a wider range of investors. This may draw in new investors and increase the value for current shareholders.
Following the announcement, investors’ mindset was positive as RIL shares were trading 2.4% higher at Rs 3,068 each by 2:00 pm.
Reliance Industries is a major participant in a number of sectors, including energy, retail and telecom, thus the AGM was important not just for the shareholders but also for the overall market. With a market valuation of more than Rs 20 lakh crore, the company commands a significant share of the Indian economy.
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