On Thursday, September 5, 2024, Reliance Industries Limited, led by Mukesh Ambani, approved the issuance of bonus shares.
Shareholders will receive one additional share for every share they currently hold, based on a yet-to-be-announced record date.
Additionally, the board decided to increase the authorized share capital from ₹15,000 crores to ₹50,000 crores.
Company’s History of Bonus Shares
This marks the sixth time Reliance Industries has issued bonus shares.
The company had previously given bonus shares in 1980, 1983, 1997, 2009, and 2017.
Bonus shares are typically issued to make stocks more accessible to retail investors, especially when share prices have risen significantly.
In 2024, Reliance Industries shares have increased by 17% and are trading above ₹3,000, close to their all-time high of ₹3,217 reached in July.
Other companies in the Nifty index also frequently issue bonus shares.
Announcement at AGM
The bonus share issuance was announced during the company’s Annual General Meeting (AGM) last week.
The board discussed the proposal and planned to recommend it to shareholders for approval on September 5, 2024.
The issuance will be based on capitalizing ‘reserve’.
