Reliance board approves proposal to issue bonus shares in the ratio of 1:1, announced in AGM

Reliance Industries (RIL), led by Mukesh Ambani, announced on Thursday that its board has approved the issuance of bonus shares at a ratio of 1:1. This was announced during the group's annual general meeting (AGM). The record date for RIL's bonus issue will be disclosed later.

RIL said in a regulatory filing, "The bonus shares will be issued from cash and/or securities premium account received in general reserves and/or retained earnings available as of March 31, 2024. This corporate action will increase the authorized share capital of the company from Rs 15,000 crore to Rs 50,000 crore."

The actual number of bonus shares to be issued will be determined using the fully paid-up equity shares as of the record date. Following the announcement, RIL shares were trading 1.3% lower on the BSE, at Rs 2,989. The Nifty heavyweight has underperformed, with flat returns over the last six months.

At the AGM on August 28, Ambani announced that the company, which has businesses ranging from oil to telecom, would consider rewarding investors with a bonus issue. "We are in the business of wealth creation for India and improving the quality of life of every Indian every day," Ambani had said at the AGM. He further said that when Reliance grows, shareholders get handsome rewards.