On August 29, 2024, Reliance Industries Limited (RIL) announced its proposal for a 1:1 bonus share issue during its 47th Annual General Meeting (AGM). This means that shareholders would receive one additional share for every share they currently hold. The decision is set to be finalized by the company’s board on September 5, 2024.
This proposed bonus issue marks the third time RIL has rewarded its shareholders with bonus shares. The previous two instances occurred in November 2009 and September 2017, both times also in a 1:1 ratio.
The announcement led to an immediate surge in RIL’s share price, with the stock rising by over 2.5% to hit Rs 3,074 on the BSE. This is a significant development for investors, as RIL has a history of delivering strong returns, with a notable increase of 18% in share value so far in 2024 and an impressive long-term performance over the past decade.
RIL’s strategy of issuing bonus shares is part of its broader approach to reward shareholders and drive long-term value creation. Mukesh Ambani, RIL’s Chairman, emphasized the company’s commitment to creating wealth for the nation and its shareholders. He reiterated that the growth of Reliance has always been accompanied by generous rewards for its investors.
