Asia's richest man, Mukesh Ambani, has announced that his Reliance Industries is to consider a 1:1 bonus issue for its equity shareholder. Its Board of Directors will be meeting on September 5, 2024. Reliance Industries Ltd (RIL) is India’s most valuable company with a market cap of Rs 20.56 lakh crore. The company had last issued bonus shares in September 2017. Now, for every share an investor holds, they may receive an additional share if the proposal is approved.
"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 firm said in the stock exchange filing.
After the announcement, shares of Reliance Industries Ltd climbed nearly 3 per cent during the late afternoon trade on Thursday. A 1:1 bonus issue is often seen as a way to reward existing shareholders by increasing the number of shares they hold, effectively doubling their shares without any additional cost.
The company stated that the board will discuss and potentially recommend this bonus issue to the shareholders for their approval. If the board approves this bonus issue, it will be funded by capitalizing the company's reserves.
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