RIL to Issue Bonus Shares for Sixth Time in 41 Years: A Historical Overview

Reliance Industries Limited (RIL) has announced its plan to issue bonus shares in a 1:1 ratio, a decision revealed by Chairman Mukesh Ambani during the company’s 47th Annual General Meeting (AGM). This move is intended to reward shareholders and enhance the stock’s liquidity. Here’s a look at RIL’s history of bonus share issuances.

Historical Timeline of Bonus Issues

1. 1980: RIL issued its first bonus shares at a 3:5 ratio.
2. 1983: The company issued bonus shares at a 6:10 ratio.
3. 1997: The first of three 1:1 bonus issues.
4. 2009: Another 1:1 bonus issue.
5. 2017: The third 1:1 bonus issue.

The upcoming bonus issue will be the sixth in the company’s history, following the same 1:1 ratio as the previous three.

Benefits of a 1:1 Bonus Issue

In a 1:1 bonus issue, shareholders receive an additional share for each share they already own. For instance, holding 100 shares would entitle a shareholder to 100 additional shares, effectively doubling their total shareholding. However, the overall value of the investment remains the same as the share price adjusts to account for the bonus.

Current Stock Performance

On September 4, RIL’s stock closed at Rs 3,031.95 on the NSE, a slight decline of 0.32% from the price on August 29, which was Rs 3,041.85. The stock had risen by 1.5% on the day of the AGM. Despite a minor drop, RIL, with a valuation of Rs 20.51 lakh crore, continues to be India’s most valuable listed company. The company reported a record annual profit of Rs 79,020 crore for FY24.

Over the past year, RIL’s stock has increased by 26% and by 17% so far in 2024, reflecting strong investor confidence.