Mukesh Ambani today also launched JioPhone, along with a Rs 153 unlimited monthly plan.
Highlights
- Reliance Industries announced bonus share issue after 7 years
- Every shareholder will get 1 bonus share for every RIL share held by them
- The bonus issue will boost shareholder's wealth, say analysts
Reliance Industries, India's most valued company, today announced a 1:1 bonus issue, which will benefit its 24.63 lakh shareholders. It also launched
JioPhone, which holds the potential to revolutionise the feature phone market in India. Every shareholder of Reliance Industries will now get a bonus share for every one share held by them. This was announced by Chairman Mukesh Ambani at the company's 40th AGM (annual general meeting) held today Birla Matushri Sabhagar in Mumbai. This is the largest bonus issue, ever, in India, Mr Ambani said. "On such an occasion and in keeping with our founder to share prosperity with all shareholders, the Board of Directors has decided to recommend a bonus issue in the ratio of 1:1", he said.
Reliance Industries has generated significant shareholder wealth in the past 40 years. Rs 1000 invested in Reliance Industries shares in 1977 is Rs 16.55 lakh today, Mr Ambani said, adding that shareholder's wealth doubled effectively in every two and a half years.
The bonus issue by Reliance Industries, after a gap of over seven years, will boost shareholders value further, analysts said.
Mukesh Ambani today also launched JioPhone, along with a Rs 153 unlimited monthly plan, aimed at 50 crore feature phone users in the country. Jio will give them access to unlimited data on the JioPhone and help bridge the digital divide in the country, Mr Ambani said. This announcement led to a
sharp fall in Bharti Airtel and Idea Cellular share prices. JioPhone will be available from September, effectively free for Jio users. Jio will charge Rs 1,500 towards security deposit for the JioPhone, refundable after three years. On the JioPhone, voice will always be free.
Reliance Industries on Thursday reported record quarterly profit for the April-June quarter, helped by higher margins from its core petrochemicals business. The Mukesh Ambani-led company reported a standalone net profit of Rs. 8,196 crore, up 8.6 per cent from the same quarter last fiscal. Its revenue increased 18.4 per cent annually to Rs. 70,434 crore.
Reliance Industries shares ended 3.76 per cent higher at Rs 1,586.20. RIL shares have outperformed the broader indices so far this year by surging nearly 47 per cent compared to 21 per cent gain in the broader Nifty.