The board of directors of Reliance Industries Ltd. approved the issuance of bonus shares on Thursday, in a 1:1 ratio, issuing a new fully paid-up equity share of Rs 10 for every existing fully paid-up equity share of the same value.
The decision will be subject to shareholder approval via postal ballot. The issue will also see the capitalisation of securities premiums, general reserves, or retained earnings as of March 31, according to an exchange filing.
The company expects to credit or dispatch the bonus shares by Nov. 1.
The bonus-share issue will increase the company's authorised share capital from Rs 15,000 crore to Rs 50,000 crore. The post-bonus issue paid-up share capital is expected to rise to Rs 13,532.5 crore, with 1,353.2 crore equity shares, up from the current Rs 6,766.2 crore and 676.6 crore equity shares.
The estimated amount required for this bonus issue is Rs 6,766.2 crore. The actual number of bonus shares and paid-up capital will be determined based on fully paid-up equity shares on the record date.
Shares of RIL closed 1.25% lower at Rs 2,991.95 apiece on the BSE, compared to a 0.18% decline in the benchmark Sensex.
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