Reliance AGM 44th 2021: The country’s largest company Reliance Industries can announce bonus shares. Let us tell you that even before this, bonus issue was announced during the AGM in 1983, 1997 and 2009, 2017.
Reliance Industries AGM
The country’s largest company Reliance Industries can once again make a big announcement for its shareholders. According to media reports, may announce special dividend and bonus issue. Earlier, during its AGM, Reliance had announced bonus issue in 1983, 1997 and 2009, 2017.
what is bonus share
Bonus Shares – When the company gives shares to the investors for free, it is called bonus shares. Investors get bonus shares in a specific proportion. That is, if a company gives a bonus of 1: 1, it means that you will get 1 bonus share for every 1 share. Although the equity capital increases after the bonus issue, there is no change in the face value. Change in face value If not, the investor benefits from it in the form of more dividend in the future.
What will be the benefit to the shareholders
Experts say that after getting the bonus shares, the number of shares with the investors increases. In simple words, if a company announces 1 on 1 bonus share, then the number of shares with the investor will be doubled.
Suppose you have 100 shares before bonus, then after bonus they will become 200. But their value will not increase. Because after the bonus (X bonus), the share price gets halved.
What is the difference between a bonus and a stock split
A stock split is called a share split. The reduction of the face value of a share is called a share split.
That is, the face value of a share with a face value of Rs 10 is reduced to Rs 2. So the share has to be divided into 5 parts.
With the split, the market price of the stock on the record date will also be adjusted in 5 parts. Share splits are done primarily for the purpose of increasing liquidity and volume. The purpose of splitting shares is to attract as many retail investors as possible.
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