Reliance AGM: Board to Consider 1:1 Bonus Shares on September 5, Stock Price up by Nearly 3%

Reliance Industries witnessed a sharp 3 per cent surge in its share price on the bourses during the late afternoon trade on Thursday after the announcement that the company's board will consider issuing 1:1 bonus shares on September 5.

Shares of the firm jumped 2.63 per cent to Rs 3,074.80 on the BSE as soon as the announcement came in.

At the NSE, the bellwether stock climbed 2.58 per cent to Rs 3,074.

The company's market valuation also surged from Rs 42,399.24 crore to Rs 20,60,461.42 crore.

Reliance, the nation's most valuable company, had last issued bonus shares in September 2017.

"A meeting of the Board of Directors of the company is scheduled to be held on Thursday, September 5, 2024, to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalization of reserves," the firm said in the stock exchange filing.

Prior to the 1:1 bonus issue in 2017, Reliance had in 2009 issued a 1:1 bonus share.

The Mukesh Ambani-led conglomerate's annual general meet is one of the most anticipated events in the domestic corporate sphere. From IPO (Initial Public Offering) plans of its telecom and retail arm to announcements related to its 5G expansion plans, investors have heightened expectations from what's being put on the table in the AGM.

Meanwhile, it has been an interesting week for Reliance as the company received CCI's (Competition Commission of India) nod for the mega media merger with Disney Star on Wednesday. The value of the merger stands anywhere around Rs 70,000 crore.

On year-to-date basis, the shares of the industry heavyweight, Reliance have delivered a return of more than 17 per cent on the National Stock Exchange.

(With inputs from PTI)