1:1 Bonus Share: Mukesh Dhirubhai Ambani’s Company To Issue Free Shares After Seven Years; Largest Bonus Issue In Indian Equity Markets
The stock gave multibagger returns of 121 per cent in 5 years and over 570 per cent in 1 decade.
Mumbai, September 2024: The Board of Directors of Reliance Industries Limited (RIL) today approved the issue of bonus shares in the ratio of 1:1 i.e. every shareholder holding 1 (one) fully paid-up equity share of Rs 10 each on the record date will receive 1 (one) fully paid-up equity share of Rs. 10/- each. The record date will be separately intimated.
This will be the largest-ever issuance of bonus equity shares in the Indian equity market. The issuance and listing of bonus shares will coincide with the upcoming festive season in India and will be an early Diwali Gift to all our esteemed shareholders.
This is the sixth bonus issue from RIL since its IPO and the second in this Golden Decade. The bonus issue is a testimony to Reliance’s continued commitment towards rewarding shareholders during the Golden Decade from 2017 to 2027.
- In 2017, Reliance had issued bonus shares in the ratio of 1:1
- This was followed by a Rights Issue in 2020, where shareholder investment has grown 2.5 times already.
- In July 2023, Jio Financial Services Limited was demerged, which is valued 35 per cent higher today from its listing.
Reliance remains committed to its mission of creating all-round value for all its stakeholders in the true spirit of its ‘We Care’ philosophy in coming years.
Reliance is India’s largest private sector company, with a consolidated revenue of Rs 10,00,122 crore (USD 119.9 billion), cash profit of Rs 1,41,969 crore (USD 17.0 billion) and net profit of Rs 79,020 crore (USD 9.5 billion) for the year ended March 31, 2024. Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services.
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Currently ranked 86th, Reliance is the largest private sector company from India to be featured in Fortune’s Global 500 list of 'World’s Largest Companies' for 2024. The company stands 45th in the Forbes Global 2000 rankings of 'World’s Largest Public Companies' for 2023, the highest among Indian companies. Reliance has been recognized in Time's list of the 100 Most Influential Companies of 2024, marking the only Indian company to have achieved this honor twice. Reliance is the top-ranked Indian company and the only one in the top 100 on Forbes 'World's Best Employers 2023 list. Additionally, it is featured among LinkedIn’s 'Top Companies 2023: The 25 Best Workplaces To Grow Your Career In India.'
Reliance was founded by Dhirubhai Ambani and is now promoted and managed by his elder son, Mukesh Dhirubhai Ambani. Ambani's family has about 50 per cent shareholding in the conglomerate. The company is a constituent of the BSE Sensex Index, which is a stock market index that tracks the performance of 30 of the largest and most liquid stocks listed on BSE with a market capitalization of over Rs 20 lakh crore. The stock’s 52-week high is Rs 3,217.90 and its 52-week low of Rs 2,221.05.
The company reported positive numbers in its Quarterly Results (Q1FY25) and annual results (FY24) and has consistently shown impressive figures, demonstrating its profitable performance for over a decade. The stock gave multibagger returns of 121 per cent in 5 years and over 570 per cent in 1 decade. Investors should keep an eye on this Large-Cap stock.
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Disclaimer: The article is for informational purposes only and not investment advice.
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