Shares of billionaire Mukesh Ambani-led Reliance Industries (RIL) surged up to 3% intraday after the oil-to-telecom conglomerate announced a slew of positive announcements in its 47th annual general meeting today. Addressing 3.5 million shareholders, RIL chairman said that the board of the company will consider a 1:1 bonus share at its meeting on September 5. This is the first bonus issue by the company since 2017, when the conglomerate issued bonus shares at a 1:1 ratio.
Boosted by the development, shares of RIL gained as much as 2.6% to ₹3,074.80. Early today, the share price of the country’s most valued stock opened higher at ₹3,014.95 against the previous closing price of ₹2,995.75.
At the time of reporting, Reliance Industries shares were 1.44% higher at ₹3,039, with a market capitalisation of ₹20.56 lakh crore.
RIL shares touched its 52-week high of ₹3,217.90 on August 8, 2024, and a 52-week low of ₹2,221.05 on October 26, 2023. The RIL shares have delivered nearly 26% returns to its shareholders in the last one year as compared to nearly 27% rise in the BSE Sensex during the same period. The bluechip stock has risen 4% in six months, while it rallied nearly 18% in the calendar year 2024.
"Reliance Industries has sent a notice to the stock exchanges that the board of directors will meet on September 5 to consider issuing bonus shares in the ratio of 1:1. When Reliance grows, we reward our shareholders handsomely. And when our shareholders are rewarded handsomely, Reliance grows faster and creates more value. This virtuous cycle has been the guarantor of your company’s perpetual progress," says Mukesh Ambani at the AGM.
RIL in an exchange filing said, “A meeting of the board of directors of the company is scheduled to be held on Thursday, September 5, 2024 to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalisation of reserves.”
Last year, Reliance Industries gave ₹19 dividend for the full financial year, including ₹10 in the March quarter of FY24. At the current price, dividend yield stood at 0.63%.
As per the RIL’s annual report released early this month, Reliance has consolidated its balance sheet after the previous round of capex and is ready for the next level of growth. “Our constant endeavor to find solutions for India and Indians has helped us spot multiple growth opportunities that have expanded our business portfolio. This portfolio now enables us to touch the lives of millions of Indians through multiple products and offerings,” Mukesh Ambani, Chairman and Managing Director of RIL, wrote in the annual report, which was released on August 7.
For April-June quarter of FY25, RIL reported a 5.5% year-on-year drop in its net profit at ₹15,138 crore as compared with ₹16,011 crore in the year-ago period. Revenue from operations rose 12% to ₹236,217 crore in the first quarter as against ₹210,831 crore in the corresponding quarter last year. EBITDA increased by 2% year-on-year to ₹ 42,748 crore. Post Q1 FY25, Motilal Oswal reiterated ‘BUY’ call on RIL with a target price of ₹3,435, while Nuvama gave a ‘Buy’ call with a revised 12-month price target of ₹3,786.
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