Reliance Industries approves bonus share issue in 1:1 ratio

Reliance bonus share: Reliance Industries, the country's most valuable company, approved the one-for-one issue of bonus shares, it said on Thursday.

According to a BSE release, the company will share the details of the bonus share on the record date at a later date. 

In the exchange filing, Reliance Industries wrote, "issue of bonus shares in the ratio of 1:1 i.e. 1 (one) new fully paid-up equity share of ₹ 10/- (Rupees Ten Only) each for every 1 (one) existing fully paid-up equity share of ₹ 10/- (Rupees Ten Only) each, to the eligible equity shareholders of the Company as on the record date, by capitalization of securities premium received in cash and/or general reserve and/or retained earnings".

The company also stated that the authorised share capital of the company also increased from Rs 15,000 crore to Rs 50,000 crore.

This is the oil-to-chemicals conglomerate's first bonus issue since 2017, when its stock price was roughly 700 rupees. Its stock price has more than quadrupled since then.

This will also be Reliance's sixth bonus issue since listing.

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

Some analysts had said the shareholder meeting was underwhelming as Reliance did not provide any details on the timing of the initial public offerings of its retail and telecom units.

"When Reliance grows, we reward our shareholders handsomely," Ambani had said at the meet.

Reliance shares, which are up about 16 per cent so far this year, closed down 1.4 per cent at Rs 2,985.95.

Its shares rose last week following the bonus share plan announcement.