Reliance to Reward Shareholders with 1:1 Bonus Shares, Stock Up 2.6%

Reliance Industries Bonus Shares 2024: Mukesh Ambani-led company Reliance Industries Ltd (NSE: RELIANCE) is now going to give bonus shares. 

In the meeting of the board members of the company, it will be recommended to issue bonus shares to the shareholders in the ratio of 1:1. In other words, an extra share in Reliance Industries Ltd will be granted for each share.

To do this meeting, it is expected that the Board of Directors meeting will be scheduled for September 5. The bonus shares are redeemed from the cash reserve, which is free to the company.

The company provided these details to stock markets on Thursday. After this announcement, the company’s share rose 2.6 percent to Rs 3074.80 in intraday on Thursday. 

Let us tell you that Reliance Industries Ltd has previously issued bonus shares in 2017 and 2009 at an estimate of 1:1.

The Condition Of The Company’s Shares

After Thursday’s rise, the stock is just 4.4 percent away from its lifetime high of ₹ 3,217.90 on July 8, 2024. In the meantime, it has risen 38 % over its 52-week lowest of 2,221.05 rupees which was hit on October 26, 2023.

The stock has increased by around 24 percent in the past year, and 19 % in the first quarter of this year. Let us tell you that Reliance Industries Ltd is holding its 47th Annual General Meeting (AGM) today August 29, 2024.

What Is A Bonus Share?

We will tell you the difference between bonus and ordinary shares. Bonus shares refer to shares issued by the company to existing shareholders without cost.

This is determined by the number of shares currently owned by the shareholder.  These are distributed in a particular ratio, such as a ratio of 1:1 means one extra share for every share held. 

If an organization announces a 1:1 issue of bonus shares one shareholder who owns 100 shares will be given 100 additional shares, making his total holding 200 shares.

Quick Fact

Company name: Reliance Industries