Shares of Reliance Industries surged nearly 2.6 percent on 29 August after India's most valuable conglomerate announced that its board will consider a 1:1 bonus share issue on September 5. The announcement came minutes ahead of RIL's 47th annual general meeting that began today.
If approved, this will be RIL's first bonus issue in seven years. With this bonus issue, the Mukesh Ambani-led conglomerate aims to reward shareholders for its strong financial performance and business expansion. This move is also expected to enhance the liquidity of RIL shares, making them more accessible to a broader range of investors.
"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," said Chairman Mukesh Ambani at the AGM.
Follow our market blog to catch all the live action
At 2:02 pm, RIL shares were trading 2.3 percent higher at Rs 3,066.05 on the National Stock Exchange (NSE). The stock has gained around 18 percent so far this year, beating Nifty's returns of 15 percent during this period. In the past 12 months, the counter has risen 26 percent.
RIL bonus issue history
RIL has a history of rewarding its shareholders with bonus issues. The most recent bonus was announced on July 21, 2017, with a 1:1 bonus ratio, meaning shareholders received one additional share for every share held.
Earlier, on October 7, 2009, Reliance Industries announced another 1:1 bonus. This followed a similar bonus issue on September 13, 1997, where the company also offered a 1:1 bonus.
Going further back, Reliance Industries issued a bonus on October 28, 1983, with a 3:5 ratio, giving shareholders three additional shares for every five shares held.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
