Reliance bonus shares: Reliance Industries Ltd (RIL) has announced a new bonus issue, with the board approving a 1:1 ratio, marking its sixth bonus issue to date. This means shareholders will receive one new fully paid-up equity share for every existing share they hold. The record date for this bonus issue will be communicated separately. Following the announcement, RIL shares experienced a 1.54% decline, trading at Rs 2,983.10.
Bonus shares are allocated to existing shareholders and involve a reduction in the company’s free reserves and surplus while increasing the total number of outstanding shares. This corporate action typically leads to a decrease in per-share metrics such as earnings per share (EPS) and book value per share, resulting in a proportional drop in share price.
According to RIL’s filing with stock exchanges, the bonus shares will be distributed from the securities premium account, general reserve, or retained earnings available as of March 31, 2024. Shareholders will need to approve this issue via postal ballot.
RIL’s last bonus issue was in 2017, during which the stock price surged by 318% from Rs 725.65 to around Rs 3,015. The company had previously issued bonus shares in 2009, 1997, 1983, and 1980. Additionally, RIL is seeking approval to increase its authorized share capital from Rs 15,000 crore to Rs 50,000 crore.
