Reliance Industries Announces One-for-One Bonus Issue, Increases Authorized Share Capital
Reliance Industries, India’s most valuable company, has approved a one-for-one bonus share issue and proposed an increase in authorized share capital to ₹50,000 crore ($5.96 billion) from the current ₹15,000 crore. This marks Reliance’s first bonus issue since 2017, when its stock price hovered around ₹700. The company’s stock has since more than quadrupled.
This bonus issue will be the conglomerate’s sixth since its listing, as the company continues to expand its oil-to-chemicals, telecom, and retail arms. At the company’s recent annual general meeting, Chairman Mukesh Ambani expressed confidence that Reliance’s size, sales, and profits would more than double in the coming years. However, the meeting was met with some disappointment as there was no update on the IPOs of its retail and telecom units.
Despite the bonus share plan, Reliance shares fell 1.4% to ₹2,985.95 after the announcement, though they remain up 16% for the year. Ambani emphasized the company’s commitment to rewarding shareholders, citing the company’s impressive growth trajectory.
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