Reliance Industries Limited (RIL), one of India’s largest and most prominent conglomerates, is set to make waves in the stock market with its upcoming bonus share issue. As per reports, the company’s Board of Directors approved a 1:1 bonus share issuance during its Annual General Meeting (AGM) held in September 2024.
This move, expected to be the largest of its kind in India’s stock market, has been dubbed an “early Diwali gift” for investors, as it coincides with the festive season. Here’s everything you need to know about the 2024 bonus share issue and what it means for shareholders.
Reliance Industries 2024 Giving Bonus Shares: All You Need to Know
What Does the 1:1 Bonus Shares Reliance Industries Mean?
A 1:1 bonus share issue means that for every fully paid-up equity share of ₹10 held by an investor, they will receive an additional share of equal value, essentially doubling their shareholding without any additional investment. This is a strategic move by Reliance to reward its shareholders and increase liquidity in the stock market, making shares more accessible to smaller investors.
When Is the Record Date for the Bonus Shares?
While the bonus share announcement has been confirmed, the official record date—the date on which investors need to hold shares to be eligible for the bonus—has yet to be disclosed. However, according to media reports, RIL’s Board is expected to finalize the record date during its meeting on October 14, 2024. Investors eagerly await this date, as it will determine eligibility for the bonus shares.
Financial Results to Be Announced on October 14
In addition to confirming the bonus share record date, Reliance Industries will also review and approve its unaudited financial results for the quarter and half-year ending September 30, 2024, on October 14. This will provide investors with insights into the company’s performance and growth trajectory for the remainder of the financial year. It’s an important day not only for shareholders but for the broader market, as RIL’s results often set the tone for the overall stock market.
Check out: Reliance Results: Analyzing RIL’s Q2 Performance and Stock Outlook
Why Is This Bonus Issue Important?
This bonus share issuance will mark the sixth such event in Reliance Industries’ history and the second within this decade. Reliance Industries’ consistent strategy of rewarding shareholders is part of its “Golden Decade” plan, which runs from 2017 to 2027.
Previous bonus share issuances and the landmark Rights Issue in 2020 have significantly increased shareholder value. The 2020 Rights Issue alone raised shareholder investments by 2.5 times, showing RIL’s commitment to enhancing long-term wealth for its investors.
In 2017, the company also issued a 1:1 bonus, and in July 2023, it demerged Jio Financial Services Limited, which has since increased in value by 35% from its initial listing price. All these moves demonstrate RIL’s strong track record of creating shareholder value through innovative and strategic financial initiatives.
Read More: Reliance Industries to buy Karan Johar’s Dharma Productions?
FAQs
1. What is a bonus share issue?
A bonus share issue is when a company distributes additional shares to its existing shareholders without any cost, based on the number of shares they already own.
2. What does a 1:1 bonus issue mean?
A 1:1 bonus issue means that for every share an investor owns, they will receive one additional share. If you own 10 shares, you will receive 10 extra shares.
3. When is the record date for the Reliance bonus share issue?
The official record date is expected to be announced on October 14, 2024, after the company’s Board meeting.
4. What happens if I buy Reliance shares after the record date?
You will not be eligible for the bonus shares if you purchase Reliance shares after the record date.
5. Is this the first time Reliance has issued bonus shares?
No, this will be the sixth time Reliance has issued bonus shares. The last 1:1 bonus was issued in 2017
