Reliance Bonus Share Record Date Before Diwali 2024

Reliance Industries Ltd. (RIL) has announced October 28, 2024, as the record date for its 1:1 bonus share issue. This means that shareholders holding RIL shares as of this date will receive one additional share for every share they own. The bonus issue was initially revealed during RIL’s annual general meeting on August 29, 2024, and later approved by the board on September 5.

Shareholders & Bonus Issue 

In a recent shareholder vote, 99.92% of shareholders supported the bonus issue, showcasing confidence in the company’s decision. This bonus issue is intended to reward shareholders and maintain liquidity in the market by increasing the number of available shares.

This issue marks the sixth bonus issue by Reliance Industries since its listing and the second one in this decade. The previous bonus issue was given in 2017, also with a 1:1 ratio. RIL’s first bonus issue dates back to 1981, when shares were issued at a 3:5 ratio, followed by a 6:10 issue in 1984.

Second Quarter Performance

For the July-September quarter, Reliance Industries reported a slight revenue decline of 0.3% to Rs.2.31 lakh crore, while its net profit grew 11% quarter-on-quarter to Rs.19,323 crore. The company’s EBITDA rose marginally by 0.8% year-on-year to Rs.39,058 crore, with an expanded EBITDA margin of 16.9%. Despite weaker oil refining and petrochemical performance, its retail and telecom businesses continued to grow.

Impact on Stock Price

Following the bonus issue announcement, RIL’s stock saw a modest rise of more than 1% and has opened at Rs.2,723.95 per share. The stock has gained 15.53% over the past year and around 5% year-to-date. The increase in authorized share capital to Rs.50,000 crore suggests the company is ready for future growth.

Conclusion: Reliance’s 1:1 bonus issue is a clear nod to its shareholders, boosting liquidity and confidence. With backing from investors and a track record of rewarding them, this is set to keep RIL in the spotlight. Despite some dips in revenue, the company’s growth in key areas like retail and telecom, along with its increased share capital, shows that RIL is eyeing for bigger things. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.