The Business Bytes
Mumbai, September 5, 2024 (TBB Bureau): Reliance Industries Ltd., India’s most valuable company, has announced a 1:1 bonus issue, marking its first such issuance in seven years. The decision, approved by the board on Thursday, will see shareholders receiving one new fully paid-up equity share of ₹10 for every existing fully paid-up share they hold.
This move, subject to shareholder approval, comes as a surprise after Reliance’s last bonus share issuance in September 2017, when it also offered a 1:1 bonus. Prior to that, the company had made a similar issuance in 2009.
In a regulatory filing, Reliance stated that the record date for determining shareholder eligibility will be communicated separately.
The board also approved a proposal to increase the company’s authorised share capital from Rs 15,000 crore to Rs 50,000 crore, signalling an ambitious growth trajectory for the conglomerate.
The bonus issue is expected to enhance liquidity in the stock and reflect Reliance’s confidence in its financial position and future prospects.
