Reliance Industries Limited (RIL), led by Mukesh Ambani, has secured board approval for a 1:1 bonus share issue, meaning shareholders will receive one additional share for every share they currently hold. This significant announcement was made following the company’s board meeting on September 5, 2024, and comes as part of the 47th Annual General Meeting (AGM) disclosures, reinforcing Reliance’s commitment to its shareholders.
Key Highlights of the Bonus Issue:
- Bonus Ratio: 1:1, where each shareholder will receive an extra share for every share they own.
- Objective: To increase the liquidity of RIL shares, making them more affordable and accessible to retail investors. It also reflects the company’s strong financial performance and future growth prospects.
- Previous Bonus Issues: This is the sixth such bonus in the company’s history, with the last one being in 2017. Past issues also occurred in 2009 and 1997, highlighting RIL’s focus on rewarding its shareholders.
Mukesh Ambani, during the AGM, emphasized the importance of rewarding shareholders, stating, “Higher growth will surely bring richer rewards for you. This confidence is reflected in our decision to issue bonus shares.” Ambani linked the bonus announcement to the company’s robust performance and its positive future outlook.
Shareholder Reactions and Market Movement:
The announcement of the bonus issue was met with enthusiasm by investors, leading to increased trading activity in RIL shares. Share prices showed volatility, but the bonus issue was largely seen as a positive signal by the market. Analysts believe this move could further boost investor confidence and maintain RIL’s status as a top stock in the Indian market (mint)(Telegraph India).
By enhancing share liquidity, RIL aims to make its stock more attractive, particularly for smaller retail investors, while continuing to assert its position as one of India’s largest and most profitable companies.
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