Reliance Industries Limited, India’s largest private sector conglomerate has made news again in the corporate world with the announcement of issue of bonus shares to its existing shareholders in the ratio of 1:1. This bonus issue comes as a pleasant surprise after 12 long years; the last bonus being issued in the year 1997. This announcement is sure to trigger the price of Reliance scrip which has been under-performing lately. It is also a good move to win back investor confidence.

While the Board of Directors had approved the bonus issue last month, their decision was confirmed by the shareholders in the 35th AGM held on November 17. The record date of November 27 has been fixed for determining the members of the Company who will be entitled to receive the bonus. Accordingly, the names of members appearing in the Register of Members and/or the Register of Beneficial Owners as maintained by the Depositories at November 27 close would receive Bonus shares.

This announcement is in tune with Reliance’s tradition of rewarding its shareholders who have gained a 25 % compounded return during these 31 years of its existence as a public company. Reliance management is contemplating increasing the equity share capital in order to serve investor interest and hopes to out perform the Sensex in the coming days.

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