Mumbai (Maharashtra) [India], September 5 (ANI): The Board of Directors of Reliance Industries Limited (RIL) on Thursday, approved a 1:1 bonus issue to its shareholders. Shareholders will get one free share for each share held.
The record date for determining eligibility to get bonus share will be announced separately.
According to RIL, these decisions, aimed at enhancing shareholder value, were made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR).
The RIL board also approved a proposal to increase the authorized share capital of the company to Rs 50,000 crore from Rs 15,000 crore. This increase will allow the company to accommodate the bonus share issue and further 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.
As of today, the company’s pre-bonus paid-up capital stands at Rs 6,766.23 crore, consisting of 676.62 crore equity shares of Rs 10 each, including partly paid-up shares.
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, and the final amount will be based on the paid-up capital on the record date.
The company’s latest audited financials as of March 31, 2024, show a solid reserve base. The securities premium account holds Rs 99,802 crore, while 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. This timeline provides clarity to shareholders, who can anticipate an increase in their holdings in the near future. (ANI)
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