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Reliance Industries set October 28, 2024, as the record date for 1:1 bonus shares, with 99.92% shareholder approval, impacting the Reliance Industries share price.
Reliance Industries Limited (RIL) has announced October 28, 2024, as the record date for determining the shareholders eligible for its 1:1 bonus issue. This means that shareholders holding shares of the company as of this date will receive one additional share for each share held.
The company secured significant approval from its shareholders for the bonus issue. In the voting process, 99.92% of the votes were cast in favour of the resolution, with only 0.07% against it. This overwhelming approval indicates strong support from shareholders for the bonus issue plan, which will increase the number of shares available to shareholders and potentially boost liquidity in the stock market.
In addition to the bonus issue, Reliance Industries also received approval for increasing its authorised share capital. The proposal to alter the Capital Clause of the Memorandum of Association received 98.96% votes in favour, with 1.04% against. The increased authorised share capital now stands at Rs 50,000 crore, comprising 4,900 crore equity shares of Rs 10 each and 100 crore preference shares of Rs 10 each.
The announcement of the bonus share issue and the record date is likely to impact the Reliance Industries share price. Bonus shares often lead to increased trading activity as investors aim to acquire shares before the record date to benefit from the bonus issue. This could influence the stock's liquidity and valuation as the record date approaches.
Additionally, the increase in authorised share capital suggests that the company is preparing for future growth and expansion, which may also attract investor attention. With the bonus shares in place, the market will closely watch how the Reliance Industries share price reacts as the record date approaches.
A 1:1 bonus issue means shareholders will receive one extra share for every share they currently own, effectively doubling their number of shares. However, the stock price typically adjusts to account for the increase in shares, making the total investment value unchanged immediately after the bonus issue. The purpose of a bonus issue is often to reward shareholders and enhance stock liquidity.
Reliance Industries' announcement of the bonus share issue with a record date of October 28, 2024, is a strategic move that has received substantial support from shareholders. With an increase in authorised share capital, the company is well-positioned for its growth plans, while the bonus issue aims to reward investors and potentially boost the trading volume of the Reliance Industries share price. As the record date draws closer, the stock is likely to be in focus for market participants.
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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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