RIL Bonus Issue: Announcement of record date for bonus share issue, action seen in Reliance shares
Reliance Industries Limited, owned by billionaire businessman Mukesh Ambani, has announced the record date for the bonus issue. Reliance shareholders were waiting for this for a long time. Reliance had announced to give bonus shares in the ratio of 1:1 last month itself. But, due to some technical difficulties, there was a delay in announcing the record date.
When is the record date for the bonus issue?
Reliance has fixed October 28, 2024 as the record date for the bonus issue. Mukesh Ambani had announced the gift of bonus shares on 5 September. Bonus shares will be available in the ratio of 1:1. This means that shareholders who have Reliance shares in their demat account till 28 October 2024 will get one bonus for one share.
Bonus shares will be issued for the sixth time
Reliance is going to give bonus shares for the sixth time. Earlier, the company, which does business in oil to telecom sectors, had also given bonus shares in 1980, 1983, 1997, 2009 and 2017. Reliance had last given bonus shares in the ratio of 1:1 in 2017.
What is a bonus share?
The company gives bonus shares to its existing shareholders for free. This does not increase the value of their total investment, but the number of shares definitely increases. Now, if someone has 5 shares of Reliance worth Rs 15,000, then after the bonus issue, the value of the investment will remain Rs 15,000, but the shares will increase to 10.
Purpose of issuing bonus shares
Companies usually give bonus shares to increase earnings per share, increase the capital base and reduce free reserves. This benefits both the company and the shareholders. For example, Reliance’s share is currently around Rs 2,700. Many people may not buy it because it is expensive, especially small investors. After the bonus issue, its price will be halved, so more people will be able to buy it. At the same time, the number of shareholders’ stock will increase. This will give them more dividend.
Reliance shares’ condition
Reliance shares have been sluggish for some time. Especially, due to tensions in West Asia, due to which crude oil prices are fluctuating heavily. In the last one month, investors have got a negative return of more than 7 percent. At the same time, investors have suffered a loss of about 7 percent from Reliance in the last 6 months. However, in one year the company gave a return of more than 15 percent.
After the record date of the bonus issue was confirmed, the shares of Reliance Industries saw a rise. In early trade on Thursday, Reliance shares were trading at Rs 2,727.95 with a jump of 0.73 percent.
