Reliance Industries approves issue of bonus shares in 1:1 ratio

Reliance shares, which have gained nearly 16% so far this year, closed 1.4% lower at Rs 2,985.95. File | Photo credit: Reuters

Reliance Industries, the country’s most valuable company, on Thursday (September 5, 2024) approved the issue of one-off bonus shares and recommended an increase in the authorised share capital.

The board recommended raising the authorised share capital to 500 billion rupees ($5.96 billion) from 150 billion rupees.

This is the first bonus issue of this oil to chemicals company since 2017, when its share price was around Rs 700. Since then, its share price has increased more than four times.

Also read: Reliance Industries approves issue of bonus shares in 1:1 ratio

This will also be the sixth bonus issue from Reliance since listing.

The bonus issue proposal was announced last week, minutes before the company’s annual general meeting, where chairman Mukesh Ambani said Reliance would more than double in size, with sales and profits of its retail and telecom arms doubling.

Some analysts had said the shareholder meeting was a disappointment as Reliance did not give any details about the timing of the initial public offering of its retail and telecom units.

“When Reliance grows, we reward our shareholders well,” Mr Ambani had said at the meeting.

Reliance shares, which are up nearly 16% so far this year, closed 1.4% lower at Rs 2,985.95.

Its shares rose last week after the announcement of a bonus share plan.