New Delhi: All eyes are on the Reliance Industries board meeting today where the company is expected to take a call on the issuance of bonus shares to its shareholders in the ratio of 1:1. If implemented, the shareholders would get one free share for each share they hold as of the record date. So far the company has not announced the record date for the bonus issue.
The Board meeting follows the announcement made by the RIL chairman Mukesh Ambani at company's 47th Annual General meeting (AGM) held on August 29. Notably, this would mark the sixth occasion when the company will be rolling out bonus shares. Reliance Industries issued bonus shares to its shareholders in 1980, 1983, 1997, 2009, and 2017.
On Wednesday, RIL shares closed at Rs 3,031.95 on the NSE, down 0.32% from the August 29 closing price of Rs 3,041.85. On the day of the AGM, the stock had ended 1.5% higher.
Why Companies Issue Bonus Shares?
Companies issue bonus shares to make their stock more affordable for retail investors, especially when prices have risen sharply. By increasing the number of shares, the company lowers the price per share, making it more attractive to smaller investors. Bonus shares also reward loyal shareholders and show the company’s confidence in its future prospects.