Diwali is around the corner and the central and state governments are distributing DA Hike gifts to their employees. Meanwhile, the country’s most valuable company, Reliance Industries Limited, not to be left behind, has also announced a record date for bonus shares (RIL Bonus Share). Mukesh Ambani’s company has set October 28 as a record date to give away free bonus shares worth Rs 1 as a Diwali gift to investors.
Reliance share price to double
The path has been cleared for investors in Reliance Industries Ltd to receive bonus shares. The company announced an Oct. 28 record date on Wednesday to identify shareholders eligible to receive bonus shares. Such investors now receive 1 free share per share. This means that after the bonus issue, the number of Reliance shares in the demat accounts of these investors will double.
Mukesh Ambani announced in September
At the annual general meeting (AGM) held in September last year, Reliance Industries decided to issue 1:1 bonus shares to shareholders. This means that in addition to one share, you will also get one RIL bonus share for free. Shareholders who hold company shares before the record date will be eligible to receive bonus shares.
It is very important to understand here what these bonus shares are, so let us tell you that bonus shares are shares issued by the company to its existing shareholders without any additional cost. Bonus shares are additional shares given to existing shareholders free of charge based on the number of shares they hold. This is the cumulative income of the company that is given to shareholders not in the form of dividends but in the form of free stock.
The company will issue bonus shares after 7 years
The face value of Reliance Industries shares has been fixed at Rs 10 per share. This means that new shares of face value Rs 10 each will be granted. As mentioned above, the benefits of bonus shares are only available to those investors who were able to purchase the shares before the record date. This is the first time in seven years that Reliance Industries has paid out bonuses. Reliance had previously issued a 1:1 bonus issue in September 2017. Prior to this, similar bonus shares were issued in 2009.
What is the status of RIL shares?
Now let’s talk about Reliance Industries stock and let us tell you that despite the decline in the stock market on Wednesday, Reliance Industries stock closed higher. After opening at Rs 2,680, Reliance Share rose 1.30 per cent to hit an intraday high of Rs 2,728, but by the close, its pace slowed, rising 0.79 per cent to end at Rs 2,709.40. With a market capitalization of Rs 1,832 crore, Reliance remains the country’s most valuable company.
(Note – Always take advice from market experts before making any kind of investment in the stock market.)
