Reliance Industries of the country’s biggest industrialist Mukesh Ambani has made such an announcement that the shareholders are very happy. Reliance company has announced that preparations are being made to give 1:1 bonus to equity shareholders. This matter is to be considered in the upcoming board of directors meeting of Reliance on September 5. The company has given this information to the exchange in a filing on Thursday.
This means that if the proposal is approved, the investor can get one additional share for every share he holds. The company said in the filing, “We wish to inform you that pursuant to Regulation 29 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, September 5, 2024, to consider and recommend to the shareholders for their approval, the issue of bonus shares in the ratio of 1:1 to the equity shareholders of the Company by capitalization of reserves.”
The company said the board will discuss this bonus issue and possibly recommend it for shareholders’ approval. If the board approves this bonus issue, it will be financed by capitalizing the company’s reserves. A 1:1 bonus issue is often seen as a way to reward existing shareholders by increasing the number of shares they hold, thereby doubling the number of shares they hold at no additional cost.
Although it does not change the overall value of their investment, it may increase the liquidity of the shares in the market. A bonus issue may also reflect confidence in the company’s future prospects and strong financial position, as it usually indicates that the company has sufficient reserves to distribute among shareholders. Shareholders and investors will be closely watching the results of the meeting on September 5, as the decision may affect the stock’s performance and investor sentiment. If the bonus issue is approved, shareholders will have to give their final approval at the next general meeting. Reliance Industries is a diversified conglomerate, which operates in sectors such as petrochemicals, refining, oil, telecom and retail.
