Reliance Industries Ltd (RIL) on Thursday said its board has approved the issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalisation of reserves.
In a BSE filing, RIL said its board of directors has approved the “issue of bonus shares in the ratio of 1:1 i.e. 1 (one) new fully paid-up equity share of Rs 10 each for every 1 existing fully paid-up equity share of Rs 10 each, to the eligible equity shareholders of the Company as on the record date, by capitalisation of securities premium received in cash and / or general reserve and / or retained earnings”.
The board also approved an increase in the authorised share capital of the Company from Rs 15,000 crore to Rs 50,000 crore.
Prior to the 1:1 bonus issue in 2017, Reliance had in 2009 issued 1:1 bonus share.
A bonus issue, also known as a bonus share issue, occurs when a company distributes additional shares to its existing shareholders free of cost, based on the number of shares they already own. This is usually done in proportion to the shareholder’s current holdings, such as a 1:1 ratio where one additional share is given for each share held.
Shares of Reliance Industries Ltd on Thursday slipped by Rs 37.85 or 1.25 per cent to close at Rs 2,991.95 apiece on the BSE.
