Reliance says free shares an early Diwali gift to shareholders

Billionaire Mukesh Ambani-promoted Reliance Industries Ltd (RIL) on Thursday (September 5) said the issuance and listing of bonus shares will coincide with the upcoming festive season in India and will be an early Diwali gift to the company’s shareholders.

This comes after the board of directors of Reliance Industries approved the issue of bonus shares in the ratio of 1:1 i.e. every shareholder holding one fully paid-up equity share of ₹10 each on the record date will receive one fully paid-up equity share of ₹10 each. The record date will be separately intimated.

In 2017, Reliance Industries issued bonus shares in a ratio of 1:1. This was followed by a rights issue in 2020, where shareholder’s investment has grown 2.5 times already.

In July 2023, Jio Financial Services Ltd was demerged, and is valued 35% higher today from its listing.

Reliance Industries had made the announcement for the board meeting to consider a bonus issue just minutes before its annual general meeting on August 29.

This is the sixth instance of the company issuing bonus shares to its shareholders after 1980, 1983, 1997, 2009 and 2017.