Are you a shareholder of Reliance Industries? Then this news is for you!
The board of India’s largest company has just approved a 1:1 bonus issue.
What does this mean for shareholders?
If you hold a share of Reliance Industries on the record date fixed by the company, you’ll receive an additional share soon.
However, doubling the number of shares doesn’t mean doubling your investment.
Typically, after a bonus issue, the stock price adjusts downward to account for the increase in the number of shares.
However, it usually make the stock more liquid and might lead to higher dividend payouts.
Bonus issues are often used to reward shareholders and make shares more accessible.