Reliance Industries’ board of directors have approved the bonus issue of 1:1 for the shareholders. The board considered the 1:1 bonus issue after it announced the same during 47th Annual General Meeting. This is the first time in nearly 10 years that the RIL board has declared a bonus issue. The last bonus issue was announced in 2017. Overall, this is the sixth-ever bonus issue that the Mukesh Ambani-led behemoth has considered.
The previous bonus issue in 2017 was also a 1:1 issue. The company announced a similar bonus issue in 2009. In 1997 too, the oil and gas major had announced a 1:1 bonus issue. The bonus shares in 1983 were announced in a 6:10 ratio and the ratio was 3:5 in 1980.
Looking at the stock reaction from 2017, it has given a return of 469%. While it has risen 850% from the year 2009.
The benchmark index Nifty 50 has risen 205% since 2017 and 726% from 2009. Clearly, the shares of Reliance Industries outperformed the benchmark index.
In the near term, Reliance Industries has raised investors’ wealth by more than 4% in the last month. While it has given a return of almost 13% in the last six months.