The board of the oil and telecoms conglomerate will meet on September 5 to consider and approve a 1:1 bonus share issue. If approved, RIL shareholders will receive one bonus share for each share they currently own.
Historically, RIL has issued bonus shares five times in the last four decades, according to data from Ace Equity. The most recent bonus issue It was in 2017, at a ratio of 1:1. The company’s first bond issue was announced in 1980, at a ratio of 3:5.
In the following years, the Mukesh Ambani-owned conglomerate issued bonus shares in 1983, 1997 and 2009. The 1983 bonus issue was done in a 6:10 ratio, while subsequent issues were done in a 1:1 ratio.
Despite the rarity of bond issues, the company regularly rewards shareholders with dividends. Over the past 10 years, it has paid a total of 16 dividends, according to Trendlyne data. The company’s last dividend due date was August 19, 2024, with a payout of Rs 10 per share. As for other corporate actions, the company has not split the face value of its shares since 2000. However, it announced a rights issue in 2020 at Rs 10 per share, in a ratio of 1:15.
What does the current bond issue mean for investors?
Analysts say offering a 1:1 bonus not only widens the investor base but also improves the liquidity of RIL shares.
Chairman Mukesh Ambani said shareholders would be rewarded handsomely as the company continues to grow.
The company’s shares have risen over 38% from their 52-week low of Rs 2,221 in October 2023. They have gained nearly 24% over the past year and 19% year-to-date in 2024.
“The bond issue is a testament to the company’s financial strength and commitment to returning value to shareholders. Increased liquidity and the potential for future appreciation in value are likely to offset any negative impact on the stock price,” said Amit Goel, co-founder and chief global strategist at Pace 360.
(With data provided by Ritesh Presswala)
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