Reliance Industries: 1 share = 2

Mumbai, July 21 

Reliance Industries Ltd today announced one bonus share for every share held — the first such issue in nearly eight years. Announcing the 1:1 bonus share at the company’s 40th annual general meeting, RIL Chairman and Managing Director Mukesh Ambani said this is the country’s largest bonus issue.

The Board of India’s biggest private firm met while the shareholders’ meet was on and decided on the bonus share, which is only the fourth in its 40-year listed history.

The company had last announced 1:1 bonus share in October 2009. That was preceded by a similar ratio bonus issue in September 1997.

RIL’s first bonus share in the ratio of 3:5 was announced in October 1983.

“We wish to inform you that the Board of Directors of the company at its meeting held today has recommended issue of bonus shares to the members of the company by capitalisation of its reserves in the ratio of one bonus equity share of Rs 10 each fully paid-up for every one existing equity share of Rs 10 each fully paid-up held by the members as on record date to be fixed hereafter for the purpose,” the company said in a regulatory filing.

The company’s pre-bonus paid-up share capital was 325.17 crore shares of Rs 10 each aggregating Rs 3,251.74 crore. Post-bonus issue, paid-up share capital would be 633.15 crore shares of Rs 10 each aggregating Rs 6,331.59 crore. — PTI

Windfall for shareholders

• Reliance Industries on Friday announced bonus shares in the ratio of 1:1. This is the country’s largest bonus issue in India so far
• The ratio shows that a shareholder of the company will receive one share for every share held

Four decades of phenomenal growth

• In just four decades, RIL has grown from a small startup to one of the largest and most-admired companies in the world
• No Indian corporate has expanded so much and so fast in scope, scale, size and service to the nation
• Turnover has grown from Rs 70 crore in 1977 to over Rs 330,000 crore — a rise of nearly 4,700 times
• Net profit has grown from Rs 3 crore to nearly Rs 30,000 crore in the same period — a growth of over 10,000 times
• Total assets have increased from Rs 33 crore to over Rs 700,000 crore and a multiple of over 20,000 times
• M-cap has multiplied from Rs 10 crore to Rs 5 lakh crore— an exponential growthof 50,000 times 
• Every Rs 1,000 invested in RIL in 1977 is today worth Rs 16.54 lakh — over 1,600 times
• The employee strength of the company has grown from 3,500 in 1977 to over 2,50,000 people

Scrip surges nearly 4%

• Shares of Reliance Industries (RIL) on Friday closed the day with nearly 4% gains after the company reported its highest quarterly consolidated net profit of Rs 9,108 crore in three-months to June 30
• The scrip went up by 3.76% to close at Rs 1,586.20 on the BSE. Intra-day, it gained 4.15% to Rs 1,592.20 — its multi-year high. At NSE, shares of the company moved up by 3.66% to end at Rs 1,585

DTH stocks fall up to 6%

• Shares of broadcasting and cable TV companies slumped up to 6% on Friday after Mukesh Ambani announced the launch of a 4G-enabled feature phone which would also have a cable to connect with TV
• The scrip of Dish TV India plunged 5.85%, Sun TV Network went down by 2.65%, Hathway Cable & Datacom fell 2.58%, GTPL Hathway (2.28%) and Den Networks (0.13%) on BSE