The Board of Directors of Reliance Industries Limited (RIL) approved a 1:1 bonus share issue for its shareholders on Thursday, granting one additional share for every share held. The record date to determine eligibility for the bonus issue will be announced later.
These decisions, aimed at increasing shareholder value, were made by Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In addition to the bonus issue, the RIL board approved a proposal to raise the company's authorized share capital from Rs 15,000 crore to Rs 50,000 crore, facilitating the bonus issue and supporting future expansion efforts. The bonus shares will be issued by capitalizing amounts from the company's securities premium account, general reserves, or retained earnings.
Currently, RIL's pre-bonus paid-up capital stands at Rs 6,766.23 crore, comprising 676.62 crore equity shares with a face value of Rs 10 each, including partly paid-up shares. After the bonus issue, the paid-up capital will increase to Rs 13,532.46 crore, consisting of 1,353.24 crore equity shares.
The company estimates that approximately Rs 6,766.23 crore will be needed to execute the bonus issue, with the final amount to be confirmed based on the paid-up capital as of the record date.
RIL's latest audited financials as of March 31, 2024, indicate a robust reserve base. The securities premium account holds Rs 99,802 crore, the general reserve stands at Rs 2,56,549 crore, and retained earnings amount to Rs 1,03,213 crore.
The bonus shares are expected to be credited or dispatched to eligible shareholders by November 1, 2024, offering a clear timeline for shareholders to expect an increase in their holdings.
