Reliance Industries Announces 1:1 Bonus Shares
The board has proposed raising the authorised share capital from ₹15,000 crore to ₹50,000 crore.
Reliance Industries chairman Mukesh Ambani.
Reliance Industries Ltd (RIL) has announced a 1:1 bonus issue, where shareholders will get one additional share for each share they already hold. The exact date for this will be announced later.
Following this announcement, RIL shares fell by 1.54% to ₹2,983.10.
Bonus Issue Details
The bonus shares will be provided from the company’s reserves.
This will increase the total number of shares but reduce the earnings and book value per share, which will result in a proportional drop in the share price.
Previous Bonus Issues
RIL last issued bonus shares in 2017, with the stock price rising by 318% since then. The company has also issued bonus shares in 2009, 1997, 1983, and 1980, and has conducted five rights issues, the latest being in May 2020.
Other Board Decisions
The board has proposed raising the authorised share capital from ₹15,000 crore to ₹50,000 crore.
Additionally, they approved the forfeiture of shares if call money is not paid by September 20, 2024.
