Reliance Industries to consider 1:1 bonus shares

29 Aug 2024 , 02:43 PM

Reliance Industries Ltd. has informed the bourses that it will convene a board meeting on September 5 to explore issuing bonus shares at a 1:1 ratio.

“A meeting of the company’s Board of Directors is scheduled for Thursday, September 5, 2024, to consider and recommend to shareholders for approval the issuance of bonus shares in the ratio of 1:1 to the company’s equity shareholders through reserve capitalisation, the company said in a filing.

The statement comes ahead of the 47th Annual General Meeting, which is set to be conducted on August 29.

Companies issue bonus shares to capitalise on their free reserves, raise earnings per share (EPS) and paid-up capital, and reduce reserves. These shares are issued to shareholders at no additional cost, hence they are also known as free shares.

Bonus shares will be available only to investors who purchase the stock before the ex-date. If an investor purchases shares on or after the ex-date, they will not be entitled for bonus shares. The company said that it has not yet finalized the record date for such bonus shares.

Reliance Industries reported a 5.4% decrease in net profit to ₹15,138 Crore for the June quarter. The previous year’s figure was ₹16,011 Crore.

At around 2.35 PM, Reliance Industries was trading 1.74% higher at ₹3,048.85 per piece, against the previous close of ₹2,996.60 on NSE. The counter touched an intraday high and low of ₹3,074, and ₹2,988, respectively.

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