Reliance Industries chairman Mukesh Ambani announced a 1:1 bonus issue in the AGM held today. The announcement cheered the investors, as was indicated by the rise in share price. It rose more than 3.6% on friday, and was trading at Rs.1,585 in NSE. This reward to the shareholders comes in the backdrop of a stellar financial results announced yesterday. In the 40th AGM held on friday, Ambani further added that a 3.3 lakh crore capital expenditure cycle is now coming to an end, which will start generating free cash flows in the coming months. Jal Irani, Senior VP at Edelweiss Capital Services, had also recently remarked that Reliance Industries is expected benefit a lot in the near future as the company’s projects under commissioning will significantly add to free cash flows. “There are $40 billion worth of projects in commissioning phase, which doubles their (RIL’s) productive assets,” Irani said, adding, “We forecast RIL’s free cash flows to rocket from next year as the quarterly capex trend is plummeting.” Out of this 3.3 lakh crores, 1.3 lakh cores was earmarked for Petrochemicals segment. Reliance industries now has a market capitalisation of more than Rs. 5 lakh crore, making it the company with the largest market cap. Yesterday, Reliance Jio had proposed to launch a rights issue of shares to raise Rs 20,000 crore to invest further into the venture which has already seen investments to the tune of nearly Rs 2 lakh crore.
Reliance Industries rewards shareholders with a 1:1 bonus issue as capex cycle approaches end
Reliance Industries chairman Mukesh Ambani announced a 1:1 bonus issue in the AGM held today. The announcement cheered the investors, as was indicated by the rise in share price. It rose more than 3.6% on friday, and was trading at Rs.1,585 in NSE.
Written by FE News Desk
Updated:

If you are keen to know more about Nifty 50 and BSE Sensex levels and seek expert advice on what's driving the gains and how to build your portfolio, track the latest stock market stats, share market news and top brokerage bets on Financial Express.
Download the Financial Express App for the fastest and most reliable business news alerts, key investment strategies and latest movers and shakers from across financial market.
This article was first uploaded on July twenty-one, twenty seventeen, at twenty-eight minutes past three in the afternoon.