RIL bonus share record date: Mukesh Ambani-led Reliance Industries (RIL), a diversified conglomerate spanning from oil to retail, has announced that the record date for determining shareholders eligible for the 1:1 bonus share issue will be Monday, October 28, 2024.
The issuance of bonus shares in a 1:1 ratio was initially announced by Mukesh Ambani, the company’s chairman, during the 28th annual general meeting (AGM).
“We are in the business of creating wealth for India and enhancing the quality of life of every Indian, every single day,” Ambani had said, emphasizing that when Reliance grows, shareholders are rewarded handsomely.
The company has received shareholder approval for both the bonus share issue and the increase in its authorised share capital, as per a filing with the stock exchanges.
According to an ET report, the resolution for the bonus share issue received overwhelming support, with 99.92% of the votes cast in favor and only 0.07% against it.
Similarly, the resolution for increasing the authorised share capital and amending the Capital Clause of the Memorandum of Association garnered 98.96% votes in favor, while 1.04% were against it.
Following the changes, RIL’s authorised share capital now stands at Rs 50,000 crore, comprising 4,900 crore equity shares of Rs 10 each and 100 crore preference shares of Rs 10 each.
According to a regulatory filing by RIL, “The bonus shares will be issued out of securities premium account received in cash and/or general reserve and/or retained earnings available as of March 31, 2024.” The corporate action will result in the company’s authorised share capital increasing from Rs 15,000 crore to Rs 50,000 crore, as previously reported by ET.
RIL bonus share issue: What does it mean for investors?
RIL has announced a 1:1 bonus issue, which means that for every existing share held by its 35 lakh shareholders, they will receive one additional share at no cost. As a result, if an investor currently owns 1,000 RIL shares, their holding will increase to 2,000 shares after the bonus issue.
It is important to note that while the number of shares held by each shareholder will double, the total value of their investment will remain unchanged. This is because the share price will be adjusted proportionately to reflect the increased number of outstanding shares.
One of the primary benefits of bonus issues is the improvement in stock liquidity. With a larger number of shares available in the market, a wider range of investors can access and trade the stock more easily.
Throughout its history, RIL has issued bonus shares on five occasions. The first bonus issue was in 1980 at a ratio of 3:5, followed by a 6:10 bonus issue in 1983. The most recent three bonus issues, in 1997, 2009, and 2017, have all been in the ratio of 1:1.