News

Published: August 29, 2024
Updated: August 29, 2024

Reliance Industries to Consider 1:1 Bonus Share Issue: A Reward for Shareholders

Board Meeting Scheduled

Reliance Industries, led by Mukesh Ambani, has announced that its Board of Directors will meet on September 5, 2024, to consider issuing bonus shares in a 1:1 ratio to equity shareholders.

Bonus Share Rationale

The bonus issue aims to reward existing shareholders by capitalizing reserves and issuing additional shares without any extra cost. This move will increase the number of shares outstanding, potentially reducing the price per share while maintaining the total investment value.

Stock Price Reaction

Following the announcement, Reliance Industries' stock rose 2.6% to ₹2995.75, nearing its peak of ₹3,217.90. The stock has gained 24% in the last year and 19% in 2024 YTD.

Bonus Share Benefits

Bonus shares are additional shares issued to existing shareholders, distributed in a specific ratio, such as 1:1. This means shareholders will receive additional shares, increasing their holdings without incurring additional costs.

Company's Growth Philosophy

Mukesh Ambani emphasized the company's growth philosophy during the 47th Annual General Meeting, stating, "When Reliance grows, we reward our shareholders handsomely. And when our shareholders are rewarded handsomely, Reliance grows faster and creates more value."

Reliance Industries' proposed 1:1 bonus share issue demonstrates its commitment to rewarding shareholders and driving growth. As the company continues to create value, investors may eagerly anticipate the outcome of the Board meeting on September 5, 2024.