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  1. Reliance Industries AGM: After gap of 8 years, board clears 1:1 bonus

Reliance Industries AGM: After gap of 8 years, board clears 1:1 bonus

Reliance Industries (RIL) on Friday recommended issue of bonus shares in the ratio of 1:1 to the common shareholders of the company after a gap of eight years.

By: | Mumbai | Updated: July 22, 2017 6:22 AM
Reliance Industries, AGM, indstry Reliance Industries (RIL) on Friday recommended issue of bonus shares in the ratio of 1:1 to the common shareholders of the company after a gap of eight years. The last bonus issue was in 2009, again in the ratio of 1:1. (PTI)

Reliance Industries (RIL) on Friday recommended issue of bonus shares in the ratio of 1:1 to the common shareholders of the company after a gap of eight years. The last bonus issue was in 2009, again in the ratio of 1:1. The announcement was made by RIL chairman and managing director Mukesh Ambani at the company’s 40th annual general meeting after a board meeting. Addressing the shareholders at the AGM, Ambani said, “I had promised our shareholders that we will reward them at the end of the investment cycle. This is our 40th year… I am really delighted to share… that the board of directors have decided to recommend a bonus issue of 1:1 share. This is the largest bonus issue ever by any company in India.” The RIL share rose 4% after the announcement and ended the Friday’s session at Rs 1,586.20, up 3.8%, on the BSE. The bonus issue is subject to approval of shareholders of the company through postal ballot, and will be given in the ratio of one bonus equity share of Rs 10 each fully paid-up for every one existing equity share of Rs 10 each fully paid-up held by the members as on a record date to be fixed for the purpose.The company will also seek the approval of members of the company through postal ballot inter alia for increase in authorised share capital of the company, it said in a notice to the stock exchanges.

The company expects to credit/dispatch the bonus shares by September 20, 2017, which is within two months from the date of the approval of the board. In an annexure filed with the BSE, the company said that the bonus issue will be issued out of securities premium account and capital redemption reserve of the company available as on March 31, 2017. The pre-bonus issue paid up capital as on date stands at over 325 crore equity shares of Rs 10 each including 17.18 crore equity shares held by subsidiary companies aggregating Rs 3,251.74 crore. The post-bonus issue paid-up share capital will be over 633 crore equity shares of Rs 10 each aggregating Rs 6,331.59 crore.

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The free reserves and /or share premium required for implementing the bonus issue will be Rs 3079.85 crore based on the estimated number of bonus shares by the company as of now. “The actual number of bonus shares to be issued and amount will be determined based on the paid-up share capital as on a record date to be fixed for the purpose,” the notice said. As on March 31, 2017, RIL’s capital redemption reserve stood at Rs 48 crore and securities premium account at Rs 49,080 crore. The company filing added that the free reserves aggregating Rs 2.29 lakh crore are not included as the same will not be capitalised.

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