Reliance Industries in its 40th AGM held on July 21, 2017 decided to come up with a bonus issue of 1:1 for its shareholders. This is for the second time the company is issuing bonus shares after its first bonus issue in November 2009.
In a bonus issue, the company converts its profits or accumulated reserves to share capital by issuance of fresh shares to current shareholders against that amount.
For issuance of bonus shares there is an ex-bonus date. So, you have to buy the shares of the company issuing bonus shares before they go ex-bonus to be entitled to receive bonus from the company. For Reliance Industries, the ex-bonus date is from today i.e. any buying in RIL shares done today or thereafter shall not be eligible to receive bonus shares.
1. Increased buying in RIL shares: Shares of Reliance Industries witnessed increased buying in the run up to bonus issue. The price per share surged by nearly 9% in a week's time.
2. Share Price of RIL nearly halved in value to Rs. 832.5 : As the company had announced a bonus issue of 1:1, its share price had reduced to half in today's trading session to Rs. 832.5 in comparison to Wednesday's closing price of Rs. 1645.40.
3. Record date for issuance of bonus shares is September 9: Shareholders having RIL shares in their portfolio will be entitled to receive 1 free bonus share for every share held by him or her on September 9, 2017.