Reliance Industries Limited (RIL) has announced a 1:1 bonus issue for its shareholders, which means that shareholders will receive one free share for each share they hold. This decision was made by the company’s Board of Directors in order to enhance shareholder value and is in compliance with regulations set by the Securities and Exchange Board of India (SEBI). The record date for determining eligibility to receive the bonus share will be announced separately.
In addition to the bonus issue, the RIL board also approved a proposal to increase the company’s authorized share capital from Rs 15,000 crore to Rs 50,000 crore. This increase will allow the company to accommodate the bonus share issue as well as position itself for future expansion. The bonus shares will be issued by capitalizing from the company’s securities premium account, general reserves, or retained earnings.
Prior to the bonus issue, the company’s pre-bonus paid-up capital was Rs 6,766.23 crore, consisting of 676.62 crore equity shares of Rs 10 each. After the bonus issue, the paid-up capital will double to Rs 13,532.46 crore, comprising 1,353.24 crore equity shares. The company estimates that Rs 6,766.23 crore will be required to implement the bonus issue, with the final amount based on the paid-up capital on the record date.
RIL’s latest audited financials as of March 31, 2024, show a healthy reserve base. The securities premium account holds Rs 99,802 crore, the general reserve stands at Rs 2,56,549 crore, and retained earnings amount to Rs 1,03,213 crore. The bonus shares are expected to be credited or dispatched to eligible shareholders by November 1, 2024, providing clarity to shareholders about the timeline for receiving their additional shares.
Overall, the bonus issue and increase in authorized share capital reflect RIL’s commitment to enhancing shareholder value and positioning itself for future growth. Shareholders can anticipate an increase in their holdings and potential benefits from the company’s strong financial position. The bonus issue is a positive development for RIL shareholders and demonstrates the company’s confidence in its ability to generate value for its investors.
