Reliance Industries Approves 1:1 Bonus Issue, Plans Major Capital Increase

Reliance Industries Limited (RIL) Board of Directors has approved a 1:1 bonus issue for shareholders and plans to increase the company's authorized share capital to Rs 50,000 crore. The bonus shares will be credited or dispatched by November 1, 2024.

On Thursday, Reliance Industries Limited (RIL) announced that its Board of Directors has greenlit a 1:1 bonus issue for shareholders. This means that shareholders will receive one free share for each share they hold. The record date to determine eligibility for receiving the bonus shares will be announced at a future date.

According to RIL, these moves are designed to enhance shareholder value and are in line with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the board has approved a proposal to increase the company's authorized share capital from Rs 15,000 crore to Rs 50,000 crore. This increase is aimed at accommodating the bonus issue and supporting future expansion plans.

The bonus shares will be issued by capitalizing the company's securities premium account, general reserves, or retained earnings. As of now, RIL'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. Post-bonus, the paid-up capital will double to Rs 13,532.46 crore, and the company estimates Rs 6,766.23 crore will be needed to implement the bonus issue. With a solid reserve base shown in its latest audited financials as of March 31, 2024, including a securities premium account of Rs 99,802 crore, a general reserve of Rs 2,56,549 crore, and retained earnings of Rs 1,03,213 crore, RIL is well positioned to execute the plan.

Eligible shareholders can expect to receive or have their bonus shares dispatched by November 1, 2024. This timeline ensures clarity and allows shareholders to anticipate an increase in their holdings in the near future. (ANI)

(With inputs from agencies.)