RIL Bonus Issue: Reliance Industries announced a 1:1 bonus share issue, a first in the history of the company, and the largest bonus equity issuance in the country. This is the first bonus issue by India’s most valuable company in seven years. The board simultaneously approved increasing the authorized share capital from ₹15,000 crore to ₹50,000 crore.
RIL’s Sixth Bonus Share Issuance Since Listing
This is the sixth bonus share issuance for RIL since its listing. The company issued its last 1:1 bonus in September 2017 when the share price was around ₹700. On Thursday, the scrip of RIL settled 1.41% lower at ₹2,987.15 on the Bombay Stock Exchange.
RIL said in its official statement, “The Board of Directors of Reliance Industries Limited (RIL) approved the issue of bonus shares in the ratio of 1:1. Every shareholder holding one fully paid-up equity share of ₹10 on the record date will receive one additional fully paid-up equity share.” The record date for the bonus issue will be declared in due course.
Consistent Shareholder Rewards from 2017 to 2027
The bonus issue history of RIL started in 1980-81 with a 3:5 issue, followed by a 6:10 bonus in 1983-84, and subsequent 1:1 bonus issues in 1997-98, 2009-10, and 2017-18. The current bonus issuance by the company will fall under its so-called “Golden Decade” plan from 2017 to 2027, wherein the company proposes rewarding shareholders on a continued basis.
Jio Financial Services was demerged from Reliance in July 2023 and has returned 35% since listing. Besides, its 2020 rights issue has grown shareholder investment by 2.5 times.
Indeed, during the AGM conducted on August 29, the chairman of RIL, Mukesh Ambani, said: “When Reliance grows, we reward our shareholders handsomely.” And, true to its word, the company, under the scheme, would be doubling in size, especially in its retail and telecom businesses.