Reliance Industries Ltd. (RIL), India’s largest conglomerate, has announced a 1:1 bonus share issue during its 47th Annual General Meeting (AGM) on August 29, 2024. This bonus issue comes after seven years, with the last bonus issue taking place in 2017. The move is aimed at rewarding shareholders and enhancing liquidity by increasing the number of shares available in the market.
Key Information About the RIL 2024 Bonus Shares
- Bonus Share Ratio:
The bonus shares will be issued in a 1:1 ratio, meaning shareholders will receive one additional share for every share they hold as of the record date. - Record Date:
The record date for the bonus issue is crucial for determining the eligibility of shareholders. Although the company has not yet confirmed the record date, it will likely be announced after the Board of Directors meeting on September 5, 2024. Investors must own RIL shares before the record date to receive the bonus shares. - Stock Price Adjustment:
After the bonus shares are issued, the stock price will adjust to reflect the increased number of shares. The share price will likely decrease in proportion to the bonus ratio, but shareholders will benefit from holding more shares.
How to Check if You’ve Received Bonus Shares
If you own Reliance shares before the record date, the bonus shares will be automatically credited to your Demat account. To confirm if you’ve received them, follow these steps:
- Log in to your Demat account or trading platform.
- Check your holdings post the record date.
- If the bonus shares are not reflected, contact your broker or registrar (usually KFintech or Link Intime) for assistance.
What Are Bonus Shares and How They Work
Bonus shares are additional shares issued to existing shareholders, distributed from a company’s accumulated reserves. Bonus shares do not affect the total value of an investor’s holdings because, while the number of shares increases, the share price is adjusted to reflect the increased number of shares in circulation. The market capitalization of the company remains unchanged, though the stock becomes more affordable, attracting retail investors.
For instance, if you own 100 shares of Reliance and the company issues a 1:1 bonus, you will receive an additional 100 shares, bringing your total to 200 shares. However, the share price will adjust to reflect this, ensuring that the total value of your holdings remains the same.
RIL Bonus Share History
Reliance has a track record of issuing bonus shares. This will be the sixth bonus issue by the company since 1980. Previous bonus issues include:
- 1980: 3:5 bonus share issue.
- 1983: 6:10 bonus share issue.
- 1997, 2009, and 2017: 1:1 bonus share issues
FAQs on Reliance Industries Bonus Shares
1. What is the 2024 bonus share ratio?
The bonus share ratio for 2024 is 1:1, meaning shareholders will receive one additional share for every share they own.
2. When is the record date for Reliance Industries bonus shares?
The record date has not been confirmed yet but is expected to be announced after the Board of Directors meeting on September 5, 2024.
3. Why is Reliance issuing bonus shares?
Bonus shares increase liquidity and make shares more affordable for retail investors. It’s also a way to reward shareholders and signal confidence in the company’s growth prospects.
4. What happens to the share price after a bonus issue?
After the bonus shares are issued, the stock price will adjust downward to reflect the increased number of shares in circulation, but the overall market capitalization remains unchanged.
5. Are bonus shares taxable?
The issuance of bonus shares is not taxable at the time of issue. However, when you sell these shares, any gains will be subject to capital gains tax.
Stay tuned for further announcements regarding the record date and other important details about the bonus shares.