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Reliance Industries (RIL) has gained approval from its shareholders for a 1:1 bonus share issue and an increase in its authorized share capital. According to a stock exchange announcement, an overwhelming 99.92% of votes supported the bonus share resolution, with only 0.07% against it. For the increase in authorized share capital, 98.96% voted in favor.
RIL’s authorized share capital will rise from ₹15,000 crore to ₹50,000 crore. This includes 4,900 crore equity shares and 100 crore preference shares, each valued at ₹10. The decision to issue bonus shares was made during RIL’s 28th annual general meeting (AGM), where Mukesh Ambani emphasized the company’s mission to create wealth for India.
A 1:1 bonus share issue means that for every share an investor currently holds, they will receive one additional share for free. For instance, if you own 1,000 shares, you’ll now have 2,000 shares. However, the overall investment value remains unchanged since share prices adjust accordingly.
Bonus shares can increase stock liquidity, making it easier for more investors to buy and sell shares. Amit Goel, Co-Founder of Pace 360, noted that this move reflects RIL’s financial strength and commitment to shareholder value, suggesting that increased liquidity and future growth potential will outweigh any short-term impacts on share price.
Historically, RIL has issued bonus shares five times, including the last three in 1997, 2009, and 2017, all at a 1:1 ratio.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
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