The shares of Reliance Industries Limited on Thursday (August 29) climbed nearly 3 per cent during the late afternoon trading session. This recent surge in stock prices was followed by the company’s announcement that its board will meet on September 5 to consider issuing bonus shares in a 1:1 ratio.
This in simple terms means that the shareholders would receive an additional share for every share they currently own.
Market Responds Positively to Bonus Share News
The chairman of Reliance Industries, Mukesh Ambani today conducted its 47th annual general meeting where he announced the issue of bonus shares.
The announcement had an immediate impact on the stock market. On the Bombay Stock Exchange (BSE), RIL shares jumped by 2.63 per cent, reaching Rs 3,074.80. Similarly, on the National Stock Exchange (NSE), the stock climbed by 2.58 per cent to Rs 3,074.
Share performance |
At 2:37 pm IST, the shares were trading at Rs 3,040.15 a piece, up by 1.45 per cent.
This spike in the share price also resulted to a surge in the company’s market valuation, which increased by Rs 42,399.24 crore, bringing the total to Rs 20,60,461.42 crore.
47th Annual General Meeting and Market Performance
Interestingly, the announcement came just minutes before Reliance’s 47th Annual General Meeting (AGM).
The timing of the announcement added to the excitement surrounding the event, further driving up the stock price.
This is not the first time that the company has rewarded its shareholders with bonus shares. Earlier in September 2017, the company issued a bonus share in a 1:1 ratio.
Before that, a similar bonus share issue occurred in 2009.
