Mukesh Ambani announces AGM bonanza, RIL to consider bonus issue
Reliance Industries (RIL) will meet on September 5 to consider and approve a bonus issue in the ratio of 1:1.
«The Board of Directors is scheduled to be held September 5, 2024, to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalization of reserves,» the company said in a filing.
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The announcement comes on the heels of the company's 47th annual general meeting (AGM), which will be held at 2 pm today.
Reliance has issued two bonus shares to investors in the last 15 years, with the most recent one announced at a 1:1 ratio in 2017.
A company issues bonus shares to its shareholders to increase the liquidity of its stock and to lower its stock price, making it more affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, shareholders do not incur any extra costs. The number of bonus shares received depends on the number of shares the shareholder already holds.
All shareholders who own shares of the company before the record date, which is set by the company, are eligible for additional shares.
Once allotted, the bonus shares will rank pari passu in all respects, carrying the same rights as the existing equity shares. They will be entitled to participate fully in any dividends and other corporate actions recommended.
The proposal to consider the bonus
