Reliance Industries Ltd, led by Mukesh Ambani, revealed on Thursday that its board has given its nod for 1:1 bonus share issuance which was initially announced during the company's AGM (Annual general meeting).
This move will raise the company’s authorised share capital from Rs 15,000 crore to Rs 50,000 crore. Meanwhile, the precise number of bonus shares to be issued will be calculated based on the fully paid-up equity shares on the record date.
While the date of the issuance has not been decided yet by the board members, "the bonus shares will be issued out of securities premium account received in cash and / or general reserve and / or retained earnings available as at March 31, 2024," the company said in its regulatory filing.
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On Thursday, the shares of the oil-to-telecom conglomerate closed the day at Rs 2,991 price level, down by nearly 1.26 per cent on the National Stock Exchange.
During the AGM, Reliance announced various new developments and the bonus issue disclosure was among the key declarations by the billionaire chairman Mukesh Ambani.
From green energy developments to data centres in Jamnagar, the conglomerate also revealed many infrastructural projects in the pipeline.
Just earlier this week, the company received approval to establish a battery manufacturing plant with a production capacity of up to 10 GW, under the Rs 3,620 crore Production Linked Incentive (PLI) scheme for ACC Battery Storage.
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"The ministry has awarded the 10 GWh PLI ACC capacity to the shortlisted bidder with highest overall score, i.e., Reliance Industries Limited, and the remaining five shortlisted bidders are put on the waiting list as per their rank, starting from Rank II onward," the statement said.
On year-to-date basis, the shares of the conglomerate have delivered a return of more than 15 per cent on the National Stock Exchange.
