During the annual general meeting (AGM) of Reliance Industries held on Thursday, Mukesh Ambani announced a significant gift for the company’s 35 lakh shareholders. The announcement of granting bonus shares to all shareholders on September 5 has led to a remarkable surge in the company’s stock price.
The Richest Company in India
Currently, Reliance Industries stands as the most valuable company in India, with a market capitalization exceeding ₹20 lakh crores. The conglomerate operates in various sectors including petrochemicals, energy, retail, telecommunications, and new energy, showcasing a diversified portfolio that contributes to its immense valuation and operational success.
Bonus Shares Announcement
In the AGM, Mukesh Ambani revealed that shareholders would receive bonus shares at a ratio of 1:1. This means that for every share held, shareholders will receive an additional bonus share. This move is expected to cause a stock split post-September 5, enhancing the liquidity and affordability of the shares for investors.
Historical Context
Since January 2000, Reliance Industries has not split the face value of its shares. Instead, the company has opted to issue bonus shares. Previously, bonus shares were issued on November 26, 2009, and another round was announced on September 7, 2017. This strategy has provided shareholders with additional value over the years.
Stock Price Surge
Immediately following Mukesh Ambani’s announcement of the bonus shares, the company’s stock price experienced significant growth. Before the AGM commenced at 2 PM, shares were trading at ₹3,007. Following the announcement, the stock price skyrocketed to an intraday high of ₹3,074.80, reflecting an approximate 2% increase.
Current Market Activity
As of 2:45 PM, the stock price experienced a slight correction, retracting to ₹3,024. Despite this minor decline, the overall sentiment in the market remains optimistic due to the bonus shares announcement and future growth prospects.
Summary of Key Points
| Aspect | Details |
|---|---|
| Announcement | Bonus shares at a 1:1 ratio to shareholders |
| Effective Date | September 5, 2024 |
| Current Market Cap | Over ₹20 lakh crores |
| Stock Price Before Announcement | ₹3,007 |
| Stock Price After Announcement | ₹3,074.80 (Intraday High) |
| Current Stock Price | ₹3,024 |
Conclusion
The announcement of bonus shares by Reliance Industries is expected to enhance shareholder value and reaffirm the company’s position as a leader in the Indian market. Investors and analysts alike will be closely watching the stock’s performance as the effective date nears, and they anticipate further developments from this industry giant.
