Reliance Industries Ltd today announced one bonus share for every share held -- the first such issue in nearly eight years. Announcing the 1:1 bonus share at the company's 40th annual general meeting, RIL Chairman and Managing Director Mukesh Ambani said this is the country's largest bonus issue.
The board of India's biggest private firm met while the shareholders' meet was on and decided on the bonus share, which is only the fourth in its 40-year listed history. The company had last announced 1:1 bonus share in October 2009. That was preceded by a similar ratio bonus issue in September 1997. RIL's first bonus share in the ratio of 3:5 was announced in October 1983.
"We wish to inform you that the Board of Directors of the company at its meeting held today has recommended issue of bonus shares to the members of the company by capitalisation of its reserves 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 record date to be fixed hereafter for the purpose," the company said in a regulatory filing.
RIL said it will also seek shareholders approval through postal ballot for increase in authorised share capital of the company. The board meeting lasted just 10 minutes, the filing said.
The company's pre-bonus paid-up share capital was 325.17 crore equity shares of Rs 10 each (including 17.18 crore equity shares held by subsidiary companies) aggregating Rs 3,251.74 crore.
Post-bonus issue paid-up share capital would be 633.15 crore equity shares of Rs 10 each aggregating Rs 6,331.59 crore.