Reliance Industries proposes 1:1 bonus issue
02 Sep 2024
Reliance Industries on Thursday announced that its board of directors are meeting on 5 September to consider an issue of bonus shares in the ratio of 1:1.
In a stock exchange filing Reliance said its board of directors is scheduled to meet on Thursday, 5 September 2024, to consider and recommend the issue of bonus shares in the ratio of 1:1 by capitalization of reserves.
Record date for the proposed bonus issue, the fifth since its inception, is yet to be determined. Shareholders who’s names are in the record books of the company before the record date will be eligible for bonus shares.
Reliance Industries, India's most valued company, announced its first bonus issue in October 1983. Since then, the oil-to-telecom conglomerate issued bonus shares 3 more times, all on 1:1 basis.
The fifth bonus issue will increase the company’s equity base by 25 times from the 1983 level.
This means that a long-term investor who bought 1,000 share in the 1983 IPO will have it multiplied to 12,800 shares worth Rs3.92 crore as of today. The proposed bonus issue if approved, will double the size to 25,600 shares, taking the value of shares to Rs7.85 crore. Reliance has a present market capitalization of over Rs20 lakh crore.
The news of bonus share issue boosted the share, raising its price by 2.31 per cent to Rs3,065.70 on Thursday.