The board of Reliance Industries Ltd (RIL) approved a bonus issue in the ratio of 1:1 on Thursday.

Every Reliance shareholder holding one fully paid-up share on the record date will receive one share.

RIL said in a regulatory filing that the record date will be intimated separately.

The board also recommended an increase in authorised share capital to ₹50,000 crore from ₹15,000 crore, the company said in a statement.

The Mukesh Ambani-led giant said it will be the largest issue of bonus shares in the Indian market.

“The issuance and the listing of bonus shares will coincide with the upcoming festive season in India and will be an early Diwali Gift to all our esteemed shareholders,’’ Reliance said.

Under a bonus issue, free shares are issued to existing shareholders (as on the record date set by the company) by capitalising reserves.

This is the sixth bonus issue from RIL since its IPO and the second in this decade.

According to the company, the free shares are a testimony to its continued commitment towards rewarding shareholders during the `Golden Decade’ from 2017 to 2027.

In 2017, RIL had issued bonus shares in the ratio of 1:1. It was followed by a rights issue in 2020, where shareholder’s investment grew 2.5 times.

In July 2023, Jio Financial Services Ltd (JFS) was demerged. RIL said JFS is valued 35 per cent higher now from its listing.

Since the bonus news was already discounted by the markets, shares of RIL ended lower 1.41 per cent at ₹2,987.15 on the BSE.

The announcement was made at its 47th annual general meeting (AGM) on August 29.

Since the AGM, the RIL share has shown signs of tiredness as investors were disappointed Ambani
did not announce steps on value unlocking.

The markets were expecting Ambani to give some timeline on the listing of the digital services and retail businesses.