Reliance Industries board to consider issuing 1:1 bonus shares on September 5

Mukesh Ambani-led Reliance Industries announced that its Board will convene on Thursday, September 5, 2024 to consider and recommend to the shareholders the approval of a bonus issue of shares in the ratio of 1:1.

“We wish to inform you that pursuant to Regulation 29 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, September 5, 2024 to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 1:1 to the Equity Shareholders of the Company by capitalization of reserves,” the company said in an exhange filing.

The stock rose as much as 2.6 percent to ₹2995.75 post the announcement of bonus issue. After today's rally, the stock is just 4.4 percent away from its peak of ₹3,217.90, hit on July 8, 2024. Meanwhile, it has risen over 38 percent from its 52-week low of ₹2,221.05, hit on October 26, 2023. The stock has gained almost 24 percent in the last 1 year and 19 percent in 2024 YTD.

Bonus shares are additional shares that a company issues to its existing shareholders without any additional cost, based on the number of shares that a shareholder already owns. They are distributed in a specific ratio, such as 1:1, which means one bonus share for every one share held.

If a company announces a 1:1 bonus issue, a shareholder who owns 100 shares will receive an additional 100 shares, making their total holdings 200 shares. However, the price of each share might reduce, keeping the total investment value approximately the same.

"At 1.45 pm today, Reliance Industries Limited has sent a notice to the stock exchanges that the Board of Directors will meet on 5th September to consider issuing Bonus shares in the ratio of 1:1. 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," Reliance Industries Chairman Mukesh Ambani says while addressing the shareholders during the 47th Annual General Meeting.