Reliance Industries To Consider Bonus Issue On Sept. 5

Reliance Industries Ltd.'s board on Sept. 5 will consider issuing one bonus share for every equity share held in the company by capitalising on reserves.

"A meeting of the board of directors of the company is scheduled to be held on Thursday, Sept. 5, 2024, to consider and recommend to the shareholders, for their approval, the issue of bonus shares in the ratio of 1:1 to the equity shareholders of the company by capitalisation of reserves," the company said in an exchange filing.

This comes ahead of Reliance Industries' 47th annual general meeting. The last time the company considered a bonus issue was on Sept. 7, 2017, in the 1:1 ratio, according to data on the BSE.

At 1:59 p.m., shares of the company surged to their one-month high, contributing nearly 60 points to a 100-point rise in Nifty.

Shares of the rose as much as 2.58% to Rs 3,074 apiece, the highest level since July 22. It pared gains to trade 2.3% higher to Rs 3,067 apiece, as of 1:59 p.m. This compares to a 0.4% advance in the NSE Nifty 50 Index.

It has risen 18.56% on a year-to-date basis and 27.3% in the last 12 months. Total traded volume so far in the day stood at 1.95 times its 30-day average. The relative strength index was at 60.75.

Out of the 36 analysts tracking the company, 25 maintain a 'buy' rating, eight recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 8.2%.