Mumbai, Oct 8: Making an unscheduled announcement, the Reliance Industries on Wednesday, Oct 7 declared issue of bonus shares. This has led the Indian markets open on a higher note pushing the Nifty above the 5k mark.
The index heavyweight has recommended an issue of one bonus share for every share held by shareholders and would help unlock value.
Apart from this, CFO Alok Agarwal has informed that the board has also approved a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders.
Even though the shares fell 1.57 per cent to Rs 2,099 in the early trade, experts had predicted that this move would flare up the markets on Thursday, Oct 8.
"This comes as a big surprise to the shareholders of Reliance Industries and would propel investor sentiment. The scrip, which has been under-performing for the past few days, is likely to open strong. It is a move by RIL to win back investor confidence," SMC Global Vice President Rajesh Jain said.
This comes after a 12-year-hiatus. Last time the company announced a bonus issue was in Oct 1997.